CONSOLIDATED FINANCIAL STATEMENTSConsolidated profit and loss account Consolidated statement of cash...

CONSOLIDATED FINANCIALSTATEMENTS

Results as at 31 December 2004

YYEEAARR EENNDDEEDD 3311 DDEECCEEMMBBEERR 22000044

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Consolidated balance sheetConsolidated profit and loss accountConsolidated statement of cash flowsNotes to the consolidated financial statements

Note 1 Accounting policiesNote 2 Scope of consolidationNote 3 Interbank and money market itemsNote 4 Customer itemsNote 5 Transactions on trading account securities, securities available for sale and debt securities held to maturityNote 6 Insurance company investmentsNote 7 Investments in non-consolidated undertakings, other participating interests and equity securities held for long-term

investmentNote 8 Provisions for credit risks and country risksNote 9 Investments in companies carried under the equity methodNote 10 Long-term investmentsNote 11 Tangible and intangible assetsNote 12 GoodwillNote 13 Accrued income and other assetsNote 14 Interbank items and money market securitiesNote 15 Customer deposits, retail certificates of deposit and negotiable certificates of depositNote 16 Bond issuesNote 17 Technical reserves of insurance companiesNote 18 Accruals and other liabilitiesNote 19 Provisions for contingencies and chargesNote 20 Subordinated debtNote 21 Reserve for general banking risksNote 22 Consolidated shareholders’ equityNote 23 Off balance sheet commitmentsNote 24 Forward and options contractsNote 25 BNP Paribas Group exposure to market risks on financial instrument transactions at 31 December 2004Note 26 SecuritizationsNote 27 Pension and post-employment benefit obligationsNote 28 Maturity schedule of loans, deposits and interest rate instrumentsNote 29 Net interest incomeNote 30 Net interest income (expense) on interbank itemsNote 31 Net interest income (expense) on customer itemsNote 32 Net income from securities portfolioNote 33 Net commissionsNote 34 Underwriting result and net investment income of insurance companiesNote 35 Salaries and employee benefits, including profit-sharingNote 36 Stock option plansNote 37 Gains (losses) on disposals of long-term investments and changes in provisionsNote 38 Non-recurring itemsNote 39 Segment informationNote 40 Corporate income taxNote 41 BNP Paribas merger-related restructuring costsNote 42 Number of employees at year-end

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CONSOLIDATED BALANCE SHEETA S S E T S

In millions of euros, at 31 December 2 0 0 4 2 0 0 3 2 0 0 2

Interbank and money market items (note 3):Cash and amounts due from central banks and post officebanks

6,843 5,287 9,884

Treasury bills and money market instruments (note 5) 128,400 106,671 83,990 Due from credit institutions 180,443 162,950 146,512

________ ________ _______Total interbank and money market items 315,686 274,908 240,386

Customer items (note 4):Due from customers 237,508 201,611 204,719 Leasing receivables 20,572 20,362 20,622

________ ________ _______Total customer items 258,080 221,973 225,341

Bonds and other fixed income instruments (note 5) 66,899 55,005 41,964

Equities and other variable income instruments (note 5) 72,254 52,506 22,616

Insurance company investments (note 6) 69,501 62,275 57,154

Investments in non-consolidated undertakings, otherparticipating interests and equity securities held for long-term investment (note 7)

Investments in non-consolidated undertakings and otherparticipating interests 2,609 2,160 5,872 Equity securities held for long-term investment 3,514 4,612 5,407

_______ _______ _______Total investments in non-consolidated undertakings, otherparticipating interests and equity securities held for long-term investment 6,123 6,772 11,279

Investments in companies carried under the equity method:Financial sector companies 737 1,436 1,557 Non-financial sector companies 1,024 195 238

______ ______ _______Total investments in companies carried under the equitymethod (note 9) 1,761 1,631 1,795

Tangible and intangible assets (note 11) 9,582 9,008 8,640

Goodwill (note 12) 6,244 5,578 6,547

Accrued income and other assets (note 13) 99,808 93,420 94,597

________ ________ ________Total assets 905,938 783,076 710,319

COMMITMENTS GIVENFinancing commitments given (note 23) 172,641 156,287 140,398 Guarantees and endorsements given (note 23) 66,148 56,865 60,226 Commitments related to securities to be delivered (note 23) 8,241 7,389 7,960 Insurance company commitments 466 1,297 914 Commitments incurred on forward and options contracts (note 24) 20,556,393 18,356,809 13,959,842

L I A B I L I T I E S A N D S H A R E H O L D E R S ’ E Q U I T Y


Interbank and money market items (note 14):Due to central banks and post office banks 256 60 159 Due to credit institutions 244,707 191,194 177,746

________ ________ ________Total interbank and money market items 244,963 191,254 177,905

Customer items (note 15) 237,712 210,621 195,569

Debt securities:Retail certificates of deposit (note 15) 6,712 4,933 6,708 Interbank market securities (note 14) 1,175 1,025 1,025 Negotiable certificates of deposit (note 15) 83,844 67,014 64,913 Bonds, including short-term portion (note 16) 11,094 9,952 11,260 Other debt instruments 1,141 177 151

_______ _______ ________Total debt securities 103,966 83,101 84,057

Technical reserves of insurance companies (note 17) 69,378 61,808 56,526

Accrued expenses and other liabilities (note 18) 198,128 184,820 145,836

Badwill (note 12) 15 18 22

Provision for contingencies and charges (note 19) 3,764 4,045 4,144

Subordinated debt (note 20) 12,242 13,226 14,283

Reserve for general banking risks (note 21) 752 843 997

Minority interests in consolidated subsidiaries (note 22) 4,824 5,019 4,535

Shareholders’ equity (note 22):Share capital 1,769 1,806 1,790 Additional paid-in capital in excess of par and premium onacquisition 10,340 11,017 10,804 Retained earnings 13,417 11,737 10,556 Net income 4,668 3,761 3,295

_______ _______ ________Total shareholders’ equity 30,194 28,321 26,445

________ ________ ________Total liabilities and shareholders’ equity 905,938 783,076 710,319

COMMITMENTS RECEIVEDFinancing commitments received (note 23) 35,251 43,976 21,536 Guarantees and endorsements received (note 23) 50,212 42,951 43,824 Commitments related to securities to be received (note 23) 9,570 7,852 15,037 Insurance company commitments 1,807 2,801 2,065

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BNP PARIBAS GROUP

CONSOLIDATED PROFIT AND LOSS ACCOUNT

In millions of euros 2004 2003 2002

Interest income 28,332 27,174 31,606 Interest expense (22,213) (20,663) (26,222)Net interest income (note 29) 6,119 6,511 5,384 Income on equities and other variable income instruments (note 32) 294 283 323 Commission income 7,098 6,319 6,160 Commission expense (2,411) (2,026) (1,982)Net commission income (note 33) 4,687 4,293 4,178 Net gains on trading account securities 4,713 4,407 4,687 Net gains on securities available for sale 453 190 139 Other banking income 1,005 970 1,134 Other banking expenses (904) (880) (911)Net other banking income 101 90 223 Underwriting result and net investment income of insurance companies(note 34) 1,919 1,658 1,440 Net income from other activities 537 503 419

Net banking income (note 39) 18,823 17,935 16,793

Operating expense:Salaries and employee benefits, including profit-sharing (note 35) (6,872) (6,763) (6,445)Other administrative expenses (3,965) (3,764) (3,892)

______ ______ ______Total operating expense (10,837) (10,527) (10,337)

Depreciation, amortisation and provisions on tangible and intangible assets (755) (758) (618)

Gross operating income (note 39) 7,231 6,650 5,838

Net additions to provisions for credit risks and country risks (note 8) (678) (1,361) (1,470)

Operating income (note 39) 6,553 5,289 4,368

Share of earnings of companies carried under the equity method (note 9) 194 131 80

Gains on long-term investments and changes in provisions (note 37) 843 912 903

Income before tax, non-recurring items, amortisation of goodwill andmovements in the reserve for general banking risks 7,590 6,332 5,351

Net non-recurring expense (note 38) (389) (494) (174)

Corporate income tax (note 40) (1,830) (1,481) (1,175)

Amortisation of goodwill (384) (399) (366)

Movements in the reserve for general banking risks 88 147 2

Minority interests (407) (344) (343)

Net income 4,668 3,761 3,295

Basic earnings per share, in euros (1) 5.55 4.31 3.78

Diluted earnings per share, in euros (2) 5.53 4.28 3.74

(1) After the two-for-one share-split in 2002.(2) In accordance with Accounting Standards Committee (CRC) standard 99-07, earnings per share are also presented on a diluted basis,

calculated in line with the method recommended by the French Accounting Board (OEC) in opinion No. 27. The method used to calculatediluted earnings per share also complies with IAS 33 “Earnings per share”. Diluted earnings per share correspond to net income for the yeardivided by the weighted-average number of shares outstanding, adjusted for the maximum number of potential ordinary shares, correspondingto dilutive instruments. Stock options are taken into account in the calculation of diluted earnings per share by the treasury stock method whichis also allowed under IAS 33.

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CONSOLIDATED STATEMENT OF CASH FLOWS

In millions of euros 2 0 0 4 2 0 0 3 2 0 0 2

Long-term sources of fundsFunds provided from shareholders’ equityFrom operations:Consolidated net income (group share and minority interest) 5,075 4,105 3,638 Depreciation and amortisation 755 758 618 Net additions to provisions 310 1,200 1,764 Share of earnings of companies carried under the equity method (194) (131) (80)

_____ _____ ______Total funds provided from operations 5,946 5,932 5,940

Dividends paid (1,842) (1,541) (1,322)Other changes in shareholders’ equity:Group share (2,252) 120 (2,482)Minority interests (273) 424 1,253

Decrease in reserve for general banking risks (91) (154) (10)

(Decrease) increase in subordinated debt (984) (1,057) 1,245 _____ ______ ______

Increase in shareholders’ equity and other long-term capital 504 3,724 4,624

Funds provided from other sources:Increase (decrease) in interbank items (liabilities) 53,709 13,349 (42,391)Increase (decrease) in customer deposits 27,091 15,052 (20,527)Increase (decrease) in debt securities 20,865 (956) (3,806)Increase in technical reserves of insurance companies 7,570 5,282 1,321 Increase (decrease) in other financial items 6,977 40,030 (7,243)

_______ _______ _______Increase (decrease) in other sources of funds 116,212 72,757 (72,646)

_______ _______ _______Total increase (decrease) in sources of funds 116,716 76,481 (68,022)

Uses:Increase (decrease) in interbank items (assets) 19,043 11,790 (33,706)Increase (decrease) in customer loans 36,829 (2,182) (8,129)Increase (decrease) in securities 45,543 63,104 (34,439)Increase in insurance company investments 7,226 5,121 944 Increase (decrease) in long-term investments 6,746 (2,478) 5,564 Increase in tangible and intangible assets 1,329 1,126 1,744

_______ _______ _______Total increase (decrease) in uses of funds 116,716 76,481 (68,022)

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BNP PARIBAS GROUP

NOTE 1 – ACCOUNTING POLICIES

The consolidated financial statements of the BNP Paribas Group have been prepared in accordance with French generallyaccepted accounting principles applicable in the banking industry.

YEAR-ON-YEAR COMPARISONS

In 2004, the BNP Paribas Group changed the method used to recognise in the profit and loss account revenues related topayouts made by venture capital funds in which the Group holds units. These amounts were previously deducted in full fromthe cost of the units in the funds held, whereas only the portion of payout revenues received corresponding to the repaid initialinvestment is now deducted from the cost of the units, with any realised gains paid out by the fund taken to the profit and lossaccount in accordance with standard industry practices. The units in the funds are still valued at the lower of historical cost thusamortised and the equity in the underlying revalued net assets which they represent. The impact of this change in the methodused to record fund payouts resulted in the recognition of EUR 167 million in net gains on long-term investments in 2004,including EUR 100 million in revenues received in prior periods.

Application by the BNP Paribas Group of decree no. 2002-970 amending the French Insurance Code and Comité de laRéglementation Comptable standard CRC 2002-09 concerning the use and accounting treatment of forward financialinstruments by insurance companies did not have a material impact on opening shareholders' equity at 1 January 2003 anddoes not affect period-on-period comparisons.

Standard CRC 2002-10 relating to the depreciation, amortisation and impairment of assets – amended by standard CRC 2003-07 of 12 December 2003 – contains measures concerning the date and consequences of the standard’s first-time application,which is compulsory from 1 January 2005. The Group has not opted for early application and is not affected by the applicabletransitional measures relating to provisions for major repairs. Moreover, as the Group has not identified any material expensesrelating to major repairs based on multi-year programmes, this standard had no impact on the Group's opening shareholders’equity at 1 January 2003.

Standard CRC 2002-03 dealing with credit risks, the classification methods to be applied to doubtful and restructured loans,and loan restructurings at below market rates of interest, has been adopted as from 1 January 2003, based on the opinionissued by the Comité d’Urgence du CNC (no. 2003-G) on 18 December 2003, and the CNC’s press release of 21 November2003. For the BNP Paribas Group, the effect of applying this method was a reduction in opening shareholders’ equity at 1January 2003 of EUR 33 million after tax, corresponding to the difference between the new interest rate on restructured loansclassified as sound and the lower rate between the original rate of interest and the market rate prevailing on the restructuringdate. The discounted interest differential will be taken into account in determining the lending margin on the loans concerned.Application of the new standard led to the reclassification under irrecoverable loans of EUR 540 million worth of loanspreviously considered as giving rise to a country risk. The loans in question consist of restructured loans that are once again indefault. The corresponding provisions, in the amount of EUR 273 million, which were previously included in provisions forcountry risks, were reclassified in 2003 under provisions for specific risks.

This standard also introduced two sub-categories of loans: sound loans restructured not at market terms, which are includedunder sound loans, and irrecoverable loans which are included under doubtful loans.

The Comité d’Urgence’s opinion dated 21 January 2004 provides guidelines on the accounting treatment of the consequencesof certain provisions of the Pensions Reform Act (Act no. 2003-775 dated 21 August 2003). Under the new rules, employeescan elect to retire before the age of 65, but cannot be required to do so by their employer. The statutory retirement bonuspayable when they retire is subject to payroll taxes. Previously, retirement bonuses paid to employees who retired at theiremployer’s request were exempt from payroll taxes. The actuarial assumptions used to calculate BNP Paribas’ related benefitobligation were therefore revised to take account of these changes, and an additional provision of EUR 229 million wasrecorded in 2003 (see note 38) in order to provide for the obligation in full, in accordance with Group policies.

PRINCIPLES AND BASIS OF CONSOLIDATION

SCOPE OF CONSOLIDATION

The consolidated financial statements include the financial statements of BNP Paribas and of all subsidiaries whose financialstatements are material in relation to the consolidated financial statements of the Group as a whole. Subsidiaries areconsidered as being material if they contribute over EUR 8 million to consolidated net banking income, EUR 4 million to grossoperating income or income before tax and amortisation of goodwill or EUR 40 million to total consolidated assets. Companiesthat hold shares in consolidated companies are also consolidated.Entities over which a Group company exercises de facto control, by virtue of contractual provisions or the entity’s articles ofassociation, are consolidated even in cases where the Group does not hold an interest in their capital. However, entities inwhich powers are not exercised in the sole interests of a Group company but in a fiduciary capacity on behalf of third partiesand in the interests of all of the parties involved, none of which exercises exclusive control over the entity, are not consolidated.

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NOTE 1 – ACCOUNTING POLICIES (cont’d)

De facto control is considered as being exercised when more than one of the following three criteria are met:

� The Group has decision-making powers, with or without management powers, over the routine operations or the assets ofthe entity, as evidenced in particular by the power to wind up the business, amend its articles of association or formallyoppose any such amendments;

� The Group is entitled to all or the majority of the entity’s economic benefits, whether distributed or appropriated toreserves, and has the right to sell one or several assets and to benefit from any assets remaining after the entity has beenliquidated;

� The Group is exposed to the majority of the risks relating to the entity. This is the case if a Group company gives aguarantee to external investors, in order to substantially reduce those investors' risk.

In cases where the Group does not hold an interest in the capital, an entity is consolidated when two of the above three criteriaare met. In accordance with standard CRC 2004-04, the first of these three criteria is critical to assessing whether de factocontrol is exercised over entities set up in connection with the sale of proprietary loan portfolios, including fonds communs decréances (securitization funds) governed by French law and foreign entities offering equivalent guarantees to those existing inFrance. Retaining the majority of risks and rewards related to sold loans is equivalent to presuming that a substantial portion ofdecision-making powers has been retained.

Entities whose shares have been acquired exclusively with a view to their subsequent disposal are not consolidated. This is thecase of shares which are intended to be sold in connection with the active management of the portfolio held by BNP ParibasCapital. Additionally, if the Group’s ability to control the operating policies and assets of a subsidiary or affiliate is severely andpermanently restricted, the subsidiary or affiliate is not consolidated. Shares in these companies are recorded in theconsolidated balance sheet under “Investments in non-consolidated undertakings and other participating interests”.

CONSOLIDATION METHODS

� Fully-consolidated Companies

Subsidiaries over which the Group exercises exclusive control are fully consolidated, including subsidiaries whose financialstatements are presented in a different format and which are engaged in a business that represents an extension of theGroup’s banking and financial services businesses or a related business, including insurance, real estate investment, realestate development and data processing services.

Exclusive control is considered as being exercised in cases where the Group is in a position to manage the subsidiary’sfinancial and operating policies with a view to benefiting from its business, as a result of:

� direct or indirect ownership of the majority of voting rights of the subsidiary; or

� the designation in two successive years of the majority of the members of the Board of Directors, Supervisory Board orequivalent. This is considered to be the case if a Group company holds over 40% of the voting rights during the two-yearperiod and no other shareholder holds a larger percentage, directly or indirectly; or

� the right to exercise dominant influence over the subsidiary by virtue of contractual provisions or the articles of association,provided that the Group company exercising the dominant influence is a shareholder or partner of the subsidiary.Dominant influence is considered as being exercised in cases where the Group company is in a position to use or decideon the utilisation of the subsidiary's assets, liabilities or off balance sheet items as if they were its own. In the absence ofcontractual provisions or provisions of the articles of association, a Group company is considered as exercising dominantinfluence over a credit institution in cases where it holds at least 20% of the voting rights and no other shareholder orgroup of shareholders holds a larger percentage.

� Proportionally-consolidated Companies

Jointly-controlled companies are consolidated by the proportional method. Joint control is considered as being exercised incases where the concerned company is managed jointly by a limited number of shareholders or partners which togetherdetermine the company’s financial and operating policies.

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� Companies Accounted for by the Equity Method

Companies in which the Group exercises significant influence over financial and operating policies without having control areaccounted for by the equity method. Significant influence may be exercised through representation on the Board of Directors,Supervisory Board or equivalent, or participation in strategic decisions, or as a result of significant business dealings with thecompany, or exchanges of management personnel or technical dependence. Significant influence over financial and operatingpolicies is considered as being exercised in cases where the Group holds at least 20% of the voting rights, directly or indirectly.

Companies that are less than 20% owned are not consolidated except in cases where they constitute a strategic investmentand the Group effectively exercises significant influence. This is the case of companies developed in partnership with othergroups, where the BNP Paribas Group participates in strategic decisions affecting the company as a member of the Board ofDirectors, Supervisory Board or equivalent, exercises influence over the company’s operational management by supplyingmanagement systems or decision-making aids, and provides technical assistance to support the company’s development.

CONSOLIDATION PRINCIPLES

Cost of Shares in Consolidated Companies, Goodwill, Valuation Adjustments

� Cost of Shares in Consolidated Companies

The cost of shares in consolidated companies is equal to the purchase price paid to the vendor by the buyer plus materialtransaction costs, net of the corresponding tax savings.

� Goodwill

Goodwill, corresponding to the difference between the cost of shares in consolidated companies and the Group’s equity in theassets, liabilities and off balance sheet items of the company at the date of acquisition, after valuation adjustments, isamortised by the straight-line method over the estimated period of benefit, not to exceed 20 years. The amortisation period isdetermined on a case-by-case basis depending on the specific conditions relating to each acquisition.

Where there is an indication that the recoverable value of goodwill could be lower than its net carrying value, an impairmenttest is carried out in order to assess whether an impairment loss should be recorded. The impairment test may be based onseveral different methods, depending on the business concerned, including discounted future cash flows estimated using thecompany’s medium-term business plan.

� Valuation Adjustments

Valuation adjustments, corresponding to the difference between the amount of assets, liabilities and off balance sheet items ofthe acquired company as restated according to Group accounting policies and their book value in the accounts of the acquiredcompany, are recorded in the consolidated balance sheet in accordance with generally accepted accounting principlesapplicable to the items concerned.

Valuation adjustments of assets and liabilities of companies accounted for under the equity method are included in"Investments in companies carried under the equity method".

Change in Percent Interests in Consolidated Companies

In the case of an increase in the Group’s percent interest in a consolidated company, additional goodwill is recorded andamortised by the method described above. If the Group’s percent interest is reduced without resulting in the subsidiary beingdeconsolidated, a corresponding percentage of the unamortised goodwill is written off. This is the case, in particular, followinga capital transaction that has the effect of diluting the interest of the company holding the shares.

Intercompany Balances and Transactions

Income and expenses on material intercompany transactions involving fully or proportionally consolidated companies orcompanies accounted for by the equity method are eliminated in consolidation. Intercompany receivables, payables,commitments, income and expenses between fully or proportionally consolidated companies are also eliminated.

Lease Financing

Finance leases where the Group is lessor are recorded in the consolidated balance sheet under “Leasing receivables” in anamount corresponding to the net investment in the lease and not the net book value in the individual company accountsdetermined in accordance with legal and tax rules. Lease payments are analysed between amortisation of the net investmentand interest income.

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Deferred taxes are recorded on the total difference between accumulated book depreciation of the leased assets andaccumulated amortisation of the net investment in the lease. This difference is recorded under “Shareholders’ equity” net ofdeferred taxes.

Foreign Currency Translation

All monetary and non-monetary assets and liabilities of foreign subsidiaries and branches that are denominated in foreigncurrencies are translated at the year-end exchange rate. Differences arising from the translation of profit and loss accountitems of foreign subsidiaries at the average rate for the period and the period-end rate are recorded in shareholders’ equity,under "Cumulative translation adjustment", net of minority interests. The same accounting treatment is applied to differencesarising from the translation of capital made available to foreign branches. Differences arising from the translation of the resultsof foreign branches are treated as operating positions that can be repatriated and are therefore recognised in the consolidatedprofit and loss account.

BNP Paribas Shares Held Within the Group

BNP Paribas shares held within the Group are valued and accounted for as follows:

- Shares acquired in order to stabilise the share price or in connection with index trading and arbitrage transactions arerecorded under “Trading account securities” at their market price.

- Shares held for allocation to employees are recorded at the lower of cost and market price under “Securities available forsale”. Where appropriate, a provision is booked for the difference between the cost of the shares and the exercise price ofthe related employee stock purchase options.

- Shares not acquired specifically for any of the above purposes or that are intended to be cancelled are deducted fromconsolidated shareholders’ equity at cost. If the shares are subsequently sold instead of being cancelled, the gain or losson disposal and the corresponding tax are posted to retained earnings.

Consolidation of Insurance Companies

The specific accounting principles and valuation rules applicable to insurance companies are also used for BNP Paribasconsolidation purposes. The balance sheet, profit and loss account and off balance sheet items of fully consolidated insurancesubsidiaries are included under similar captions in the consolidated financial statements, with the exception of the followingitems:

� Insurance Company Investments

The investments of insurance companies include admissible assets related to unit-linked business, as well as propertyinvestments and various other investments, including shares in related companies, concerning life and other business.Property investments are stated at cost, excluding transaction costs. Buildings are depreciated over their estimated usefullives. Admissible assets related to unit-linked business are stated at the realisable value of the underlying assets at the year-end.

Fixed or variable income marketable securities are stated at cost. Fixed income securities are valued and accounted for usingthe same method as debt securities held to maturity. However, when the market value of listed variable income securitiesconsistently remains more than 20% below their net book value (30% for securities traded on volatile markets) for a period ofover six months, an analysis is carried out to ascertain whether or not it is necessary to record a provision for permanentimpairment in value. If such a provision is considered necessary, it is calculated based on the realisable value of the securitiesconcerned. Realisable value is determined using a multi-criteria approach including the discounted future cash flows and netasset value methods, as well as analysis of ratios commonly used to assess future yields and exit opportunities. The valuationis performed separately for each line of securities, taking into account the planned holding period. Securities held for sale arewritten down to their probable realisable value, based on stock market prices, where appropriate.

The realisable value of buildings is calculated when the valuation performed by professional qualified valuers is more than 20%below the net book value, and is based on the discounted future cash flows expected to be generated by each building over theplanned holding period. A provision is recorded when necessary, on a building-by-building basis, to cover the differencebetween the net book value and the realisable value. In the case of buildings held for sale, provisions are calculated based onthe valuation performed by the professional qualified valuers.

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� Technical Reserves of Insurance Companies

Technical reserves correspond to the insurance company’s commitments towards policyholders and the insured. Technicalreserves for unit-linked business are determined based on the value of the underlying assets at the year-end. Life premiumreserves consist primarily of mathematical reserves corresponding to the difference between the present value of the insurer’scommitments and those of the policyholder, taking into account the probability of their settlement. Non-life technical reservesinclude unearned premium reserves (corresponding to the fraction of written premiums relating to the following period orperiods) and outstanding claims reserves, which include reserves for claims handling costs.

In the individual statutory accounts of Group insurance companies, a capitalisation reserve is set up at the time of sale ofamortisable securities, in order to defer part of the net realised gain and thus maintain the yield-to-maturity of the portfolio ofadmissible assets. In the consolidated financial statements, the bulk of this reserve is reclassified under "Policyholders'surplus".

Policyholders' surplus also includes the funds set aside to top up the return offered to holders of life insurance policies in futureyears, as necessary.

� Underwriting Result and Net Investment Income of Insurance Companies

This caption mainly includes earned premiums, paid claims and changes in outstanding claims reserves, and net investmentincome, excluding profits on intercompany transactions with Group banking entities.

OTHER SIGNIFICANT ACCOUNTING POLICIES

INTERBANK AND MONEY MARKET ITEMS, CUSTOMER ITEMS

Amounts due from credit institutions include all subordinated and unsubordinated loans made in connection with bankingtransactions with credit institutions, with the exception of debt securities. They also include assets purchased under resaleagreements, whatever the type of assets concerned, and receivables corresponding to securities sold under collateralisedrepurchase agreements. They are broken down between demand loans and deposits and term loans and time deposits.

Amounts due from customers include loans to customers other than credit institutions, with the exception of loans representedby debt securities issued by customers, assets purchased under resale agreements, whatever the type of assets concerned,and receivables corresponding to securities sold under collateralised repurchase agreements. They are broken down betweencommercial loans, customer accounts in debit and other loans.

Outstanding loans and confirmed credit facilities are classified into sound loans – including sound restructured loans – anddoubtful loans. The same classification is performed for credit risks attached to forward financial instruments whose presentvalue represents an asset for the Group.

Credit risks on outstanding loans and confirmed credit facilities are monitored using an internal rating system, based on twokey parameters: the probability of default by the counterparty, expressed as a rating, and the overall recovery rate determinedby reference to the type of transaction. There are 12 counterparty ratings, ten covering sound loans and two corresponding todoubtful loans and loans classified as irrecoverable.

Doubtful loans are defined as loans where the bank considers that there is a risk of borrowers being unable to honour all orpart of their commitments. This is considered to be the case of all loans on which one or more instalments are more than threemonths overdue (six months in the case of real estate loans and twelve months for loans to local governments), as well asloans for which legal collection procedures have been launched. When a loan is classified as doubtful, all other loans andcommitments to the debtor are automatically assigned the same classification.

A provision is booked on these loans, for an amount corresponding to the portion of the outstanding principal that is notexpected to be recovered plus unpaid interest. In all cases, the provision at least covers the total amount of accrued interest,unless the value of the guarantees held by the bank covers the principal and all or part of the interest due. Guarantees includemortgages and pledges on assets, as well as credit derivatives acquired by the Bank as a protection against credit losses.

In the case of doubtful loans where the debtor has resumed making regular payments in accordance with the originalrepayment schedule, the loan is reclassified as sound. Doubtful loans that have been restructured are also reclassified assound, provided that the restructuring terms are met. If a restructured loan reclassified as sound is not at market terms, it isrecorded in a separate account at nominal value less a discount corresponding to the difference between the new interest rateand the lower rate between the original rate of interest and the market rate prevailing at the time of the restructuring. If anyinstalments on a restructured loan are not paid, whatever the terms of the restructuring, the loan is permanently reclassified asirrecoverable.

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Small loans to private individuals in France which have been the subject of a “Neiertz Act” restructuring (loans to consumerswho have accumulated unmanageable levels of debt) are reclassified as sound only when the account manager is satisfiedthat the client will be able to fulfil his or her repayment commitments until the entire loan has been repaid. No discount isapplied to loans that are reclassified as sound, mainly by the specialised credit companies. However, a statistical provision isrecorded, based on the estimated risk of losses. This provision is at least equal to the sum of the discounts that would havebeen deducted from the loans’ carrying value.

Irrecoverable loans include loans to borrowers whose credit standing is such that after a reasonable time recorded in doubtfulloans, no reclassification as sound loans is foreseeable, loans where an event of default has occurred, restructured loanswhere the borrower has once again defaulted and loans classified as doubtful for more than one year that are in default and arenot secured by guarantees covering substantially all of the amount due.Irrecoverable loans are written off when all legal and other avenues open to the Bank to secure payment of the amounts duehave been exhausted.

Interbank and customer items are stated at their nominal value plus accrued interest. Discounts on restructured loanscalculated as described above are deducted from the carrying value of the loan and amortised over the remaining life of theloan by the yield-to-maturity method.

Provisions for credit risks on assets are deducted from the carrying value of the assets. Provisions recorded under liabilitiesinclude provisions related to off balance sheet commitments, provisions for losses on interests in real estate developmentprogrammes, provisions for claims and litigation, provisions for unidentified contingencies and provisions for unforeseeableindustry risks.

Additions to and recoveries of provisions, bad debts written off, recoveries on loans covered by provisions and discountscalculated on restructured loans are recorded in the profit and loss account under “Net additions to provisions for credit risksand country risks”, with the exception of additions to provisions for accrued interest on non-performing loans which are includedin net banking income together with the interest accrual. Amortisation of discounts on restructured loans, calculated by theyield-to-maturity method, is included in net banking income along with the interest on the loans.

Accrued interest is recorded periodically on sound loans – including restructured loans – and on doubtful loans that are notclassified as irrecoverable. Interest on doubtful loans classified as irrecoverable is recorded in the profit and loss account on acash basis.

SECURITIES

The term “securities” covers interbank market securities (mainly promissory notes and mortgage notes); Treasury bills andnegotiable certificates of deposit; bonds and other fixed income instruments (whether fixed- or floating-rate); and equities andother variable income instruments.

In application of standard CRC 2000-02, securities are classified as “Trading account securities”, “Securities available for sale”,“Equity securities available for sale in the medium-term”, “Debt securities held to maturity”, “Equity securities held for long-terminvestment”, “Other participating interests”, and “Investments in non-consolidated undertakings”. Investments in companiescarried under the equity method are recorded on a separate line of the consolidated balance sheet.

Where a credit risk has occurred, fixed income securities held in the "available for sale" or "held to maturity" portfolio areclassified as doubtful, based on the same criteria as those applied to doubtful loans and commitments.Variable income securities may also be classified as doubtful if an issuer default risk has occurred. This is the case, inparticular, where the issuer has filed for bankruptcy.

When securities exposed to counterparty risk are classified as doubtful and the related provision can be separately identified,the corresponding charge is included in “Provisions for credit risks and country risks”.

� Trading Account Securities

Securities held for up to six months are recorded under “Trading account securities” and valued individually at market. Changesin market values are posted to income.

� Securities Available for Sale

This category includes securities held for at least six months, but which are not intended to be held on a long-term basis.

Bonds and other fixed income instruments are valued at the lower of cost (excluding accrued interest) and probable marketvalue, which is generally determined on the basis of stock market prices. Accrued interest is posted to the profit and lossaccount under “Interest income on bonds and other fixed income instruments”.

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The difference between cost and the redemption price of fixed income securities purchased on the secondary market isprorated over the life of the securities and posted to the profit and loss account. In the balance sheet, their carrying value isamortised to their redemption value over their remaining life.

Equities are valued at the lower of cost and probable market value, which is generally determined on the basis of stock marketprices, for listed equities, or the BNP Paribas Group’s share in net assets calculated on the basis of the most recent financialstatements available, for unlisted equities. Dividends received are posted to income under “Income on equities and othervariable income instruments” on a cash basis.

The cost of sold securities available for sale is determined on a first in, first out (FIFO) basis. Disposal gains or losses andadditions to and reversals of lower of cost and market provisions are reflected in the profit and loss account under “Net gainson sales of securities available for sale”.

� Equity Securities Available for Sale in the Medium-Term

This category corresponds to investments made for portfolio management purposes, with the aim of realising a profit in themedium term without investing on a long-term basis in the development of the issuer’s business. “Equity securities available forsale in the medium-term” include venture capital investments.

“Equity securities available for sale in the medium-term” are recorded individually at the lower of cost and fair value. Fair valuetakes into account the issuer’s general development outlook and the planned holding period. The fair value of listed stockscorresponds primarily to the average stock market price determined over an appropriately long period.

� Debt Securities Held to Maturity

Fixed income securities (mainly bonds, interbank market securities, Treasury bills and other negotiable debt securities) arerecorded under “Debt securities held to maturity” to reflect the BNP Paribas Group’s intention of holding them on a long-termbasis, in principle to maturity. Bonds classified under this heading are financed by matching funds or hedged against interestrate exposure to maturity.

The difference between cost and the redemption price of these securities is prorated over the life of the securities in the profitand loss account. In the balance sheet, their carrying value is amortised to their redemption value over their remaining life.

Interest on debt securities held to maturity is posted to income under “Interest income on bonds and other fixed incomeinstruments”.

A provision is made when a decline in the credit standing of an issuer jeopardises redemption at maturity.

� Equity Securities Held for Long-Term Investment

This category includes shares and related instruments that the BNP Paribas Group intends to hold on a long-term basis inorder to earn a satisfactory long-term rate of return without taking an active part in the management of the issuing company butwith the intention of promoting the development of lasting business relationships by creating special ties with the issuer.

“Equity securities held for long-term investment” are recorded individually at the lower of cost and fair value. Fair value isdetermined based on available information using a multi-criteria valuation approach, including the discounted future cash flows,sum-of-the-digits and net asset value methods as well as an analysis of ratios commonly used to assess future yields and exitopportunities for each line of securities. For simplicity, listed securities acquired for less than EUR 10 million may be valuedbased on the average stock market price over the last three months.

Gains and losses on sales of equity securities held for investment and provision movements are reported in the profit and lossaccount under “Gains (losses) on disposals of long-term assets”.

Dividends received are posted to income under “Income on equities and other variable income instruments” on a cash basis.

� Non-Consolidated Undertakings and Other Participating interests

This category includes affiliates in which the Group exercises significant influence over management and investmentsconsidered strategic to the Group’s business development. This influence is deemed to exist when the Group holds anownership interest of at least 10%.

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Investments in non-consolidated undertakings and other participating interests are recorded individually at the lower of costand fair value. Fair value is determined based on available information using a multi-criteria valuation approach, including thediscounted future cash flows, sum-of-the-digits and net asset value methods as well as an analysis of ratios commonly used toassess future yields and exit opportunities for each line of securities. For simplicity, listed securities acquired for less than EUR10 million may be valued based on the average stock market price over the last three months.

Disposal gains and losses and provision movements are reported in the profit and loss account under “Gains (losses) ondisposals of long-term assets”.

Dividends are posted to “Income on equities and other variable income instruments” when they have been declared by theissuers’ shareholders or on a cash basis when the shareholders’ decision is not known.

� Investments in Companies Carried under the Equity Method

Changes in net assets of companies carried under the equity method are posted to assets under “Investments in companiescarried under the equity method” and to consolidated reserves under “Retained earnings”.

Valuation adjustments to these companies' assets and liabilities, recorded at the time of acquisition, are included in"Investments in companies carried under the equity method”.

Goodwill arising on the acquisition of companies carried under the equity method is recorded in "Goodwill".

FIXED ASSETS

In 1991 and 1992, as allowed by French regulations, Banque Nationale de Paris transferred its main operating real estateholdings to its subsidiary Compagnie Immobilière de France. This transaction covered wholly-owned buildings and buildingsleased to BNP SA (the parent company) by one of its specialised subsidiaries. These buildings are intended to be held on along-term basis. The revaluation arising from this transaction has been posted to consolidated shareholders’ equity net of therelated deferred tax effect and a provision for deferred taxes has been recorded. Effective from 1994, the resulting unrealisedcapital gain is being written back to the consolidated profit and loss account in proportion to the additional depreciation chargetaken by Compagnie Immobilière de France.

In order to reflect what appeared to be a lasting decline in the real estate market, the BNP Group wrote down the book value ofthe above real estate in 1997. The impact of this adjustment, net of the related deferred tax effect, was posted to consolidatedshareholders’ equity, consistent with the initial adjustment. This adjustment therefore has no impact on consolidated netincome.

Other buildings and equipment are stated at cost or valued in accordance with France’s appropriation laws of 1977 and 1978.Revaluation differences on non-depreciable assets, recorded at the time of these legal revaluations, are included in sharecapital.

Assets leased by the Bank from specialised subsidiaries are recorded as buildings, equipment and other under “Tangible andintangible assets”.

The restructured real estate portfolio is depreciated over a fifty-year period starting from the date of transfer using the straight-line method. Depreciation of other fixed assets is computed using the straight-line method over their estimated useful lives.

BNP Paribas and its French subsidiaries depreciate tangible assets by the accelerated method in their individual companyaccounts. In the consolidated financial statements, depreciation is adjusted (in most cases using the straight-line method) towrite off the cost of the depreciable assets over their estimated useful lives. Deferred taxes are calculated on the adjustment.

Depreciation of assets leased from Group leasing subsidiaries is reflected in the profit and loss account under “Depreciation,amortisation and provisions on tangible and intangible assets”.

The capitalised cost of software purchased or developed for internal use is recorded under “Intangible assets” and amortisedby the straight-line method over the probable period of use of the software, not to exceed five years.

Trade marks identified by the Group which have been acquired in a business combination are tested for impairment when thereis an indication that they may be impaired.

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INTERBANK AND MONEY-MARKET ITEMS AND CUSTOMER DEPOSITS

Amounts due to credit institutions are classified into demand accounts and time deposits and borrowings. Customer depositsare classified into regulated savings accounts and other customer deposits. These captions include securities and other assetssold under repurchase agreements. Accrued interest is recorded on a separate line.

DEBT SECURITIES

Debt securities are classified into retail certificates of deposit, interbank market securities, negotiable certificates of deposit,bonds and other debt instruments. This caption does not include subordinated notes which are recorded under “Subordinateddebt”.

Accrued interest on debt securities is recorded on a separate line of the balance sheet and is debited to the profit and lossaccount.

Bond issue and redemption premiums are amortised by the yield-to-maturity method over the life of the bonds. Bond issuancecosts are amortised by the straight-line method over the life of the bonds.

COUNTRY RISK PROVISIONS

Provisions for country risk are based on the evaluation of non-transfer risk related to the future solvency of each of thecountries at risk and on the systemic credit risk incurred by debtors in the event of a constant and durable deterioration of theoverall situation and economies of these countries. Country risk provisions and writebacks are reflected in the profit and lossaccount under “Net additions to provisions for credit risks and country risks”.

PROVISIONS FOR UNFORESEEABLE INDUSTRY RISKS

The Group records provisions for unforeseeable industry and other risks in order to cover losses and expenses that are notcertain of being incurred and the amount of which cannot be reliably estimated. These provisions are reversed and replaced byspecific provisions in cases where the loss or expense becomes certain and can be reliably estimated.

RESERVE FOR GENERAL BANKING RISKS

The BNP Paribas Group has set up a reserve for general banking risks in accordance with the principle of prudence.

Specific additions to, and deductions from, this reserve are reflected in the profit and loss account under “Movements in thereserve for general banking risks”.

PROVISIONS NOT SET UP IN CONNECTION WITH BANKING OR BANKING-RELATED TRANSACTIONS

The Group records provisions for clearly identified risks and charges, of uncertain timing or amount. In accordance with currentregulations, these provisions which are not connected with banking or banking-related transactions may only be recorded if theGroup has an obligation to a third party at the year-end and no equivalent economic benefits are expected from that third party.

FORWARD FINANCIAL INSTRUMENTS

Forward financial instruments are purchased on various markets for use as specific or general hedges of assets and liabilitiesand for position management purposes.

� Market Value of Financial Instruments

Financial instruments are measured based on their market value when they are listed, or based on internal models where noorganised market exists. The value determined by applying these models is adjusted to take into account inherent model andliquidity risks.

The market value of financial instruments for which a quoted price is not directly available is determined on the basis of theprice of transactions carried out close to the year-end or prices obtained from brokers or counterparties, backed up byqualitative analyses.

� Forward Interest Rate Instruments

Interest rate futures and options contracts forming part of the trading portfolio and traded on organised exchanges are markedto market at the balance sheet date. Realised and unrealised gains and losses are taken to income under “Net gains (losses)on sales of trading account securities”.

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Gains and losses on certain OTC contracts representing isolated open positions are taken to income either when the contractsare unwound or on an accruals basis, depending on the nature of the instruments. Provisions for contingencies are booked tocover unrealised losses on a contract by contract basis, taking into account potential gains and losses on related specifichedges.

Income and expenses on interest rate contracts designated at the outset as hedging operations are recognised on asymmetrical basis with the income or expense on the underlying instrument.

� Forward Currency Instruments

Options contracts are marked to market and the resulting unrealised gains and losses are posted to income. A similartreatment is used for forward exchange contracts bought and sold for trading purposes. Hedging contracts are valued at thespot rate prevailing at the end of the year. Differences between the spot and forward rates (contango and backwardation) forhedged forward currency transactions are recognised on an accruals basis and posted to the profit and loss account over thelife of the hedged transaction.

� Equity And Equity Index Derivatives

The BNP Paribas Group buys and sells equity and equity index options for trading and hedging purposes. In the case of tradingtransactions, unrealised gains and losses on contracts that have not been unwound by the balance sheet date are posteddirectly to income. Gains and losses on equity and equity index contracts designated as hedges are recognised on asymmetrical basis with the gain or loss on the underlying hedged instrument.

� Composite Instruments

Composite instruments (synthetic combinations of instruments recorded as a single instrument) are valued by aggregating theindividual values of each basic instrument included in the composite. However, they are recorded for accounting purposes as asingle instrument, with a single notional value off balance sheet and a single net movement in the consolidated profit and lossaccount.

� Credit Risk Management Instruments

Instruments intended to protect loan portfolios against counterparty risks are treated as guarantees received. Credit derivativespurchased and sold in connection with trading transactions and structured product sales are valued using internal models,based on market data where available. The revenue determined by applying these models is adjusted to take into accountinherent model and liquidity risks.

CORPORATE INCOME TAX

BNP Paribas Group companies are subject to corporate income tax based on rules and rates prevailing in the countries inwhich they operate. In France, the standard corporate income tax rate is 33 1/3%. Long-term capital gains are currently taxedat a rate of 19%. Under the French Finance Act passed at the end of 2004, long-term capital gains will be taxed at 15% as from2005 and gains on disposals of certain investments in non-consolidated undertakings will be taxed at 8% in 2006 and at 0%thereafter. Dividends received from companies in which the BNP Paribas Group has an ownership interest of more than 5%and which are covered by the parent-subsidiary tax regime are non-taxable.

The French government imposed a 3% surtax on corporate income for financial years 2002 to 2004 in addition to the 3.3%surtax levied on corporate income since 1 January 2000. The 2005 French Finance Act has reduced this surtax to 1.5% in2005 and will eliminate it as of 2006. The BNP Paribas Group has taken these surtaxes into account to determine current taxesfor each period concerned.

A charge for corporate income tax is taken in the period in which the related taxable income and expenses are booked,regardless of the period in which the tax is actually paid. BNP Paribas Group companies recognise deferred taxes based on alltemporary differences between the book value of assets and liabilities and their tax basis according to the liability method, aswell as future applicable tax rates once these have been approved. Recognition of deferred tax assets depends on theprobability of recovery.

PROFIT-SHARING

As required by French law, BNP Paribas and its French subsidiaries provide for profit sharing in the year in which the profitarises, and report the provision under salaries in “Operating expense” in the consolidated profit and loss account.

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PENSIONS AND OTHER POST-RETIREMENT BENEFIT OBLIGATIONS

Provision is made for long-service awards, supplementary pension benefits and other awards payable to active and retiredemployees, except where employer contributions are in full discharge of any future liabilities, in which case the contributionsare charged to the profit and loss account in the period of payment.

PENSION OBLIGATIONS TOWARDS RETIRED EMPLOYEES

Upon retirement, BNP Paribas Group employees receive pensions according to the laws and practices prevailing in thecountries where BNP Paribas Group companies operate.

In France, retired employees of the BNP Paribas Group’s banking subsidiaries and affiliates are entitled to the followingpension benefits starting 1 January 1994, pursuant to an industry-wide agreement on pensions signed in September 1993between the Association Française des Banques and employee representatives:

� retirees receive pension benefits from the social security system and two nation-wide organisations, which are financed bycontributions received from employers and employees. The systems operate on a pay-as-you-go basis.

� retirees receive additional benefits relative to services rendered prior to 1 January 1994, from the pension fund of the BNPParibas Group and the banking industry pension funds with which certain French subsidiaries are affiliated. Funding forthese additional benefits is provided by transfers from the pension funds’ existing reserves and, if necessary, by employercontributions, which are limited to a percentage of payroll costs. The amount of such additional benefits is adjusted toreflect the funding level of the pension funds and may consequently be reduced in due proportion.

The contributions paid by BNP Paribas to these schemes are recorded in expenses for the period.

The working capital contributions made to the two nation-wide pension organisations in 1994 are treated as prepaid expensesand amortised over the average number of years left to retirement of BNP SA participating employees, which is currently twentyyears. For Paribas employees, the contribution has been deducted from the reserves of the Paribas pension fund.

Outside France, BNP Paribas Group companies and their employees contribute to mandatory pension plans which aregenerally managed by independent organisations.

For defined benefit plans, the Group records provisions for benefit obligations where the present value of the obligationexceeds the market value of the plan assets. Benefit obligations are determined on an actuarial basis at each year end. Theyear-on-year increase or decrease in the net funded obligation, corresponding to actuarial differences arising from changes indemographic and financial assumptions or in estimated yields on plan assets, is recognised over the expected averageremaining service lives of employees covered by the plans, net of an amount equal to a certain percentage of the discountedbenefit obligation, set by convention at 10%. In the interest of prudence, the deferred portion of the actuarial difference islimited in all cases to an amount equivalent to that of the net change in the benefit obligation over the year.

For defined contribution plans, the Group records the contributions as an expense in the period they are paid.

OTHER EMPLOYEE BENEFITS

Under various agreements, the BNP Paribas Group is committed to pay early retirement, retirement and seniority bonuses,healthcare costs and other benefits to its employees in France and in most of the countries in which the Group does business.

Each year, BNP Paribas estimates the net present value of these commitments and adjusts the related provision, applying thesame method as for pension benefits.

RECOGNITION OF REVENUE AND EXPENSES

Interest and fees and commissions qualified as interest are recognised on an accruals basis. Fees and commissions notqualified as interest that relate to the provision of services are recognised when the service is performed.

NET ADDITIONS TO PROVISIONS FOR CREDIT RISKS AND COUNTRY RISKS

Net additions to provisions for credit risks and country risks include expenses arising from the identification of counterpartyrisks, including country risks, litigation and fraud inherent to banking operations conducted with third parties. Net movements inprovisions for contingencies and charges that do not fall under the category of such risks are classified in the profit and lossaccount according to their type.

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FOREIGN CURRENCY TRANSACTIONS

Foreign exchange positions are generally valued at the official year-end exchange rate. Exchange gains and losses ontransactions in foreign currency carried out in the normal course of business are recorded in the profit and loss account.

Exchange differences arising from the conversion at the year-end exchange rate of assets denominated in foreign currenciesthat are held on a long-term basis, including equity securities held for long-term investment, the capital made available tobranches and other foreign equity investments, are not recognised in the profit and loss account.

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NOTE 2 – SCOPE OF CONSOLIDATION

Changes in the scope of consolidation in 2003 and 2004 were as follows:In 2003Newly-consolidated companies

Fully-consolidated companies Proportionally-consolidatedcompanies

Companies accounted for bythe equity method

Acquisitions Klépierre subsidiaries: Cinéma de l’esplanade (Belgium), Coimbra(Belgium), Delcis sr (Czech Republic), Klenor and Kletel (Portugal),Klépierre Athinon AE (Greece), Klépierre NEA Efkarpia (Greece),Klépierre Peribola Patras AE (Greece), SAS Marseille le Merlan, SGMH1, SGS H3, SNC KC20, Vinaza (Spain), Vignate (Italy).

Klépierre subsidiaries: GondomarSGS (Portugal), Gondomar SGM(Portugal)

-

Newly-created entitiesand companies meetingthe criteria forconsolidation for the firsttime

BNP Paribas Arbitrage Issuance BV (Netherlands), BNP ParibasAssurance, BNP Paribas Emissions und Handelsgesellschaft(Germany), BNP Paribas Fixed Assets Ltd (United Kingdom), BNPParibas Capital Trust LLC 6 (United States), BNP Paribas PeregrineSecurities Korea Company Ltd, BNP Paribas US Medium Term NotesProgram LLC (United States), BNP Paribas RCC Incorporation (UnitedStates), BNP Paribas US Structured Medium Term LLC (UnitedStates), BNP Paribas ZAO (Russia), Crisps Ltd (Cayman Islands),Dealremote Ltd (United Kingdom), Epimetheus Investments Ltd(Cayman Islands), Eurocredito (Spain), Forsete Investments SA(Luxembourg), FCC Domos 2003, Global Guaranteed CliquetInvestment Ltd (Cayman Islands), Global Hedged Equity InvestmentLtd (Cayman Islands), Isis Factor Spa (Italy), Joconde SA(Luxembourg), Mexita Ltd no. 2 (Cayman Islands), Mexita Ltd no. 3(Cayman Islands), Mexita Ltd no. 4 (Cayman Islands), MistralInvestment SA (Luxembourg), SAS Prêts et Services, SingaporeEmma Finance 1 SAS, Sirocco Investment SA (Luxembourg), TenderOption Bond Municipal Program SPV (United States)Klépierre subsidiaries: Foncière de Louvain-la-Neuve (Belgium), SCITour Marcel Brot, SNC Sodevac, Sogecaec (Portugal)

Caisse d'EpargneFinancement CEFI, CetelemBrésil.

Companies excluded from the scope of consolidationFully-consolidated companies Proportionally-consolidated

companiesCompanies accounted for bythe equity method

Disposals BNP Finans a/s Norge (Norway), Cobepa subsidiary: Coparin(Luxembourg), Klépierre subsidiary: SAS Center Villepinte

- Commercial Bank of NamibiaLtd CBON

Mergers BNP Paribas Asset Management Institutionnels (merged withBNP Paribas Asset Management Group), BNP Private Bank & TrustCie Bahamas Ltd (merged with United European Bank Trust Nassau),BNP Paribas Fund Administration (Luxembourg) (merged with ParvestInvestment Management SA), Codexi (merged with Banexi SociétéCapital Risque), Paribas Santé International BV (merged with ParibasInternational BV), Safadeco SA and Safadeco SP (merged withBNP Paribas SA), UFB Factoring Italia and UFB Italia Spa (mergedwith BNP Paribas Lease Group Holding Spa)Banexi Communication, Opatra, Ottofrance International, Parfici,Paribas Santé, Société Générale Commerciale et Financière (mergedwith Société Centrale d’Investissement)

Klépierre subsidiaries: SAS Klébureaux, SAS Daumesnil Reuilly andSAS Klécentres (merged with SA Klépierre)Cobepa subsidiaries: Group T SA (Belgium) (merged with StéFinancière & de Réalisation), Libenel BV (merged with ParibasInternational BV).

Cogent Investment OperationsLuxembourg SA (merged withBNP Paribas Fund Services).Consors Discount Broker AG(merged with the Germansubsidiary of Cortal ConsorsFrance, formerly BanqueCortal), Consors France(merged with Cortal ConsorsFrance, formerly BanqueCortal).

Companies no longermeeting the criteria forconsolidation anddiscontinued operations

August Holdings Ltd (United Kingdom), BNP Paribas Asia Ltd (HongKong), BNP Paribas Investment Asia Ltd (Hong Kong), BNP ParibasMerchant Banking Asia Ltd (Singapore), BNP Paribas Panama SA,BNP Paribas Uruguay SA, BNP Prime Peregrine Holdings Ltd(Malaysia), BNP Securities Hong Kong Ltd, Compagnie Bancaire UKFonds A (United Kingdom), Fleurantine de Participations, Monopoly(United Kingdom), Société Cristolienne de Participations, WigmoreLoan Finance Ltd (United Kingdom), Cobepa subsidiary: CompagnieFinancière et Mobilière (Belgium),Klépierre subsidiaries: Belga Sept SA (Belgium), SC Cecocord, SCIBoulogne d'Aguesseau, SCI Etoile Quinzième, SCI Les Ellipses, SCILevallois Anatole France, SCI Rueil Hermes, SCI Villepinte LeTropical, SNC 86 Anatole France, SNC Couperin Foncière, SNCGodefroy No. 8 Puteaux.

Axeria Assurance -

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Changes in consolidation methodFully consolidated companies previously accounted for by the equitymethod

Fully consolidated companiespreviously proportionallyconsolidated

Proportionally consolidatedcompanies previously fullyconsolidated

Change in percentinterest

BNP Andes (Peru), Cogent Investment Operations Ireland Ltd, CogentInvestment Operations Ltd (United Kingdom), Cogent InvestmentOperations Pty (Australia), Consors International Holding (Germany).

BNP Paribas China Limited(formerly International Bank ofParis & Shanghai)

Klépierre subsidiary: SAS Bèglesd’Arcins

Compliance with Groupstandards

Sinvim - -

In 2004Newly-consolidated companies

Fully-consolidated companies Proportionally-consolidatedcompanies

Companies accounted for by theequity method

Acquisitions 54 Lombard Street Investments Ltd. (United Kingdom), Arma BeheerBV (Netherlands), Arma Belgique, Arma Nederland, Atis RealExpertise, Atis Real International – Group, Bougainville BV(Netherlands), FG Ingenerie et Promotion Immobilière - FGIP.Klépierre subsidiaries: CG Collegno (Italy), GC Seravalle (Italy), CentreDuna (Hungary), Centre Nyiregyhaza (Hungary), Centre Szeged(Hungary), Centre Szolnok (Hungary), Centre Zalaegerszeg (Hungary),Holding Csepel 2002 Kft (Hungary), Holding Debrecen 2002 Kft(Hungary), Holding Gyor 2002 Kft (Hungary), Holding Kanizsa 2002 Kft(Hungary), Holding Kaposvar 2002 Kft (Hungary), Holding Miskolc2002 Kft (Hungary), Holding Uj Alba Kft (Hungary), SAS KlépierreHongrie, SCI Aurora, SCI Noble Cafétaria, SCI Noble Galerie, SCINoble Restauration, SCI Orengal.

Klépierre subsidiaries: Effe KappaSRL (Italy), Plaza CentersManagement (Hungary).

BNP Paribas Partners for Innovation,Verner Investissements - Group.

Newly-created entitiesand other companiesmeeting the criteria forconsolidation for the firsttime

Artegy Ltd (United Kingdom), BNP Paribas (New Zealand) FinanceLtd., BNP Paribas El Djazair (Algeria), BNP Paribas Invest Immo, BNPParibas Peregrine Group, Darnell Ltd (Ireland), European HedgedEquity Ltd. (Cayman Islands), GAM, Global Guaranteed Equity Ltd.(Cayman Islands), Global Protected Alternative Investments Ltd(Cayman Islands), Global Protected Equity Ltd. (Cayman Islands),Harewood Investments No. 1 Ltd (United Kingdom), LaffiteParticipation 2, Lock-In Global Equity Ltd. (Cayman Islands), NorrskenFinance, Parifergie, SCI Rueil Caudron, Singapore Emma Finance 2SAS, Société Auxiliaire de Construction Immobilière - SACI, UCBHypotheken (Netherlands), Utexam Ltd (Ireland).Klépierre subsidiaries: Klepierre Vallecas (Italy), SNC Kletransactions,SAS Toulouse Mermoz ,SCI Bègles Papin.

Klépierre subsidiary: GalieraComerciale Assago (Italy).

Companies excluded from the scope of consolidationFully-consolidated companies Proportionally-consolidated

companiesCompanies accounted for by theequity method

Disposals Antarius Axa Refinance, BNP Paribas PrivateBanking Japan.

Mergers BNP Paribas Gestion Epargne Salariale (merged with BNP ParibasAsset Management SAS), Catesienne de Participation (merged withS.F.A), Compagnie d'Entreprises Industrielles et Commerciales, Sagaland NHG Guyomarc'h (merged with Société Centraled'Investissement), Consors International Holding GmbH (Germany)(merged with Cortal Consors German branch), Credial (merged withCrédit Moderne Antilles), Evergo Finanzaria (Italy) (merged with BNPParibas Lease Groupe SPA), Services et Prêts Immobiliers (France)(merged with UCB), Socappa (merged with BNP Paribas LeaseGroup).

Klépierre subsidiaries: Cinneo and Vignate (Italy) (merged with NovateSarl), SAS Louis David (merged with SAS Suffren Paris 15), Segecar(merged with Ségécé), SCI 8 rue du Sentier, SAS Oise Cergy and SCIChaptal Alun (merged with Klépierre).

Cortal Consors Espana SV (mergedwith Cortal Consors Spanish branch)

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Companies no longermeeting the criteria forconsolidation anddiscontinued operations

BNP Paribas Equities Group Australia Ltd, BNP Paribas Equities HongKong, BNP Paribas Equities Italia SIM SPA, BNP Paribas GuerneseyLtd, BNP Paribas Peregrine Investment Ltd (Hong Kong), BNP ParibasPeregrine Ltd (Malaysia), BNP Paribas Securities Australia Ltd, CardifSeguros de Vida (Chile), Compania de Seguros de Vida (Argentina),European Reinsurance (United Kingdom), Filip Partnership (UnitedKingdom), Great Central Railway Land (United Kingdom), SA Leval 3,UCB Group Ltd (United Kingdom).

Klépierre subsidiaries : Belarcol (Belgium), Zobel Investment BV(Netherlands).

Cobepa subsidiaries: Amparzo (Netherlands), Cobepa International(Netherlands), Compagnie de Participations Internationales SA(Luxembourg), Holnor (Netherlands), IIM (Netherlands), Ilmaco(Belgium), Libelux (Luxembourg).

Cobepa subsidiary: Bogerco(Belgium).

BNP Paribas Peregrine Futures Ltd(Hong Kong), Cetelem CapitalCompany Ltd (Korea), CortalBelgique.

State Bank of India Life InsuranceCompany Ltd.

Changes in consolidation methodFully-consolidated companies previously accounted for by the equitymethod

Fully-consolidated companiespreviously proportionallyconsolidated

Companies accounted for by theequity method previously fullyconsolidated

Change in percentinterest

Halifax Cetelem (United Kingdom).

Klépierre subsidiary: CentroShopping Gestion (Italy).

Compagnie Belge de ParticipationsParibas - COBEPA.

Cobepa subsidiaries: Cippar(Belgium), Cobepa Finance(Luxembourg), Compagnie deParticipations Internationales NV(Netherlands), Copabel SA (Belgium),Groupe Financier Liegeois (Belgium),Ibel (Belgium), Mascagni (Belgium),Paribas Deelnemingen NV(Netherlands), Regio Invest OntwikMaats (Belgium), SA Mosane(Belgium), Société Financière et deRéalisation (Belgium), Tradexco SA(Belgium), Ulran (Luxembourg).

Compliance with Groupstandards

Cetelem Brésil, Cetelem Polska Expansion (Poland), PT BNP ParibasPeregrine (Indonesia).

Abbey National France, Bank Von Ernst and Société Monégasque de Banque Privée could not be consolidated for the financial statements at31 December 2004 as they were acquired at the end of the year and do not currently comply with the BNP Paribas Group consolidationstandards. However, the consolidation of these companies would not have had a material impact on the Group's results, shareholders' equity ortotal assets.

(1) Members of the BNP Paribas SA tax group as of 1 January 2004- 19 -

FULLY-CONSOLIDATED COMPANIES

Financial institutions Groupvoting

interest (%)

Groupownership

interest(%)

IN FRANCE

Credit institutions

Antin Bail (1) 100.00% 100.00%Banque de Bretagne (1) 100.00% 100.00%Banque Financière Cardif (1) 100.00% 100.00%BNP Intercontinentale - BNPI (1) 100.00% 100.00%BNP Paribas Emergis (1) 100.00% 100.00%BNP Paribas Factor (1) 100.00% 100.00%BNP Paribas Guadeloupe (1) 100.00% 100.00%BNP Paribas Guyane (1) 100.00% 100.00%BNP Paribas Invest Immo (1) 100.00% 99.96%BNP Paribas Lease Group (1) 99.96% 99.96%BNP Paribas Martinique (1) 100.00% 100.00%BNP Paribas Nouvelle-Calédonie 100.00% 100.00%BNP Paribas Private Bank (1) 100.00% 100.00%BNP Paribas Private Bank Monaco 100.00% 99.99%BNP Paribas Réunion (1) 100.00% 100.00%BNP Paribas Securities Services - BP2S (1) 100.00% 100.00%Cetelem (1) 100.00% 100.00%Claas Financial Services 89.49% 89.46%CNH Capital Europe 50.10% 50.08%Cofica Bail (1) 100.00% 100.00%Compagnie Médicale de financement de Voitures et matériels - CMV Médiforce (1) 100,00% 100.00%Cortal Consors France (1) 100.00% 100.00%Crédit Moderne Antilles 100.00% 100.00%Crédit Moderne Guyane 100.00% 100.00%Crédit Moderne Océan Indien 97.81% 97.81%Facet 90.00% 90.00%Fidem 51.00% 51.00%Finance et Gestion SA 70.00% 69.97%Financière Marché Saint Honoré (1) 100.00% 100.00%Loisirs Finance 51.00% 51.00%Natiobail 95.46% 95.42%Natiocrédibail 100.00% 99.96%Natiocrédimurs (1) 100.00% 99.96%Natioénergie 100.00% 99.96%Norbail SNC (1) 100.00% 99.96%Norrsken Finance 51.00% 51.00%Paribas Dérivés Garantis SNC (1) 100.00% 100.00%Paricomi 100.00% 100.00%Parifergie (1) 100.00% 100.00%Parilease (1) 100.00% 100.00%Same Deutz-Fahr Finance 99.97% 99.93%SAS Prêts et Services 100.00% 100.00%UCB (1) 100.00% 100.00%UCB Bail (1) 100.00% 100.00%UCB Entreprises (1) 100.00% 100.00%UCB Locabail immobilier 100.00% 100.00%

Other financial institutions

Arius Finance (1) 100.00% 99.99%Arius SA (1) 100.00% 99.99%Arval ECL SAS (1) 100.00% 99.99%Arval PHH Holding SAS (1) 100.00% 99.99%Arval Service Lease (1) 100.00% 99.99%B*Capital (1) 99.96% 99.96%Banexi Société de Capital-Risque Bancaire 99.99% 99.99%BNP Paribas Arbitrage (1) 100.00% 100.00%BNP Paribas Asset Management (1) 100.00% 100.00%BNP Paribas Asset Management Group (1) 100.00% 100.00%



interest (%)

Groupownership

interest(%)

IN FRANCE

Other financial institutions (cont’d)

BNP Paribas Développement 100.00% 100.00%BNP Paribas Epargne Entreprise Gestion (1) 100.00% 100.00%BNP Paribas Equities France (1) 99.96% 99.96%BNP Paribas Equity Strategies France (1) 100.00% 100.00%BNP Paribas Securities Services International Holding SA (1) 100.00% 100.00%Capstar Partners SAS 86.67% 86.67%Cardif Asset Management (1) 100.00% 100.00%Compagnie d'Investissements de Paris - C.I.P 100.00% 100.00%Conseil Investissement (1) 100.00% 100.00%Cortal Fund Management (1) 100.00% 100.00%Effico Soreco (formerly Sté de Renseignements Contentieux Développement) (1) 99.92% 99.92%Financière BNP Paribas (1) 100.00% 100.00%Gestion et Location Holding (1) 99.99% 99.99%Jovacienne de Participations (1) 100.00% 100.00%SCAU (formerly Société de Courtage et d’Assurance Universel) (1) 100.00% 99.96%Société Française Auxiliaire - S.F.A. (1) 100.00% 100.00%Truck Management Artegy (1) 100.00% 99.99%

Other financial sector companies

Aprolis Finance 51.00% 50.98%Cofiparc (1) 100.00% 99.99%FCC Domos 2003 100.00% 100.00%Laffite Participation 2 100.00% 100.00%Singapore Emma Finance 1 SAS (1) 100.00% 100.00%Singapore Emma Finance 2 SAS (1) 100.00% 100.00%

OUTSIDE FRANCE

Credit institutions

Europe

Banca UCB SPA Italy 100.00% 100.00%Banco Cetelem Portugal Portugal 100.00% 100.00%Banco Cetelem SA Spain 100.00% 100.00%BNP Capital Finance Ltd Ireland 100.00% 100.00%BNP Factor Portugal 100.00% 100.00%BNP Paribas (Bulgaria) AD Bulgaria 100.00% 100.00%BNP Paribas Bank (Hungaria) RT Hungary 100.00% 100.00%BNP Paribas Bank (Polska) SA Poland 100.00% 100.00%BNP Paribas Bank NV Netherlands 100.00% 100.00%BNP Paribas Cyprus Ltd Cyprus 100.00% 100.00%BNP Paribas Espana SA Spain 99.48% 99.48%BNP Paribas Finance plc United Kingdom 100.00% 100.00%BNP Paribas Luxembourg SA Luxembourg 100.00% 100.00%BNP Paribas Net Ltd United Kingdom 100.00% 100.00%BNP Paribas Private Bank Switzerland Switzerland 100.00% 99.99%BNP Paribas Suisse SA Switzerland 99.99% 99.99%BNP Paribas ZAO Russia 100.00% 100.00%Cetelem Bank GmbH Germany 70.00% 70.00%Cetelem Belgium Belgium 100.00% 100.00%Cetelem Benelux BV Netherlands 100.00% 100.00%Cetelem Polska Expansion SA Poland 100.00% 100.00%CNH Capital Europe Ltd United Kingdom 100.00% 50.08%Cortal Consors Luxembourg SA (formerly Cortal Bank Luxembourg) Luxembourg 100.00% 100.00%Isis Factor SPA Italy 100.00% 100.00%Magyar Cetelem Hungary 100.00% 100.00%UCB Hypotheken Netherlands 100.00% 100.00%Union de Creditos Immobiliarios - UCI (Group) Spain 50.00% 50.00%United European Bank Luxembourg Luxembourg 100.00% 99.99%United European Bank Switzerland Switzerland 100.00% 99.99%



interest (%)

Groupownership

interest(%)

OUTSIDE FRANCE

Credit institutions (cont’d)

Americas

Banco Cetelem Argentine Argentina 60.00% 60.00%BancWest Corporation (Group) United States 100.00% 100.00%BNP Andes Peru 100.00% 100.00%BNP Paribas Brasil SA Brazil 100.00% 100.00%BNP Paribas Canada Canada 100.00% 100.00%BNP Paribas Finance Incorporated United States 100.00% 100.00%BNP Paribas Leasing Corporation United States 100.00% 100.00%Cetelem Brésil Brazil 100.00% 100.00%Paribas Principal Incorporated United States 100.00% 100.00%United European Bank Nassau Bahamas 100.00% 99.99%

Asia-Pacific

BNP Paribas (China) Limited People’s Republicof China

100.00% 100.00%

BNP Paribas Peregrine Services Ltd Hong Kong 100.00% 100.00%BNP Paribas Peregrine (Singapore) Ltd Singapore 100.00% 100.00%Cetelem Thaïlande Thailand 100.00% 100.00%PT Bank BNP Paribas Indonesia Indonesia 100.00% 100.00%PT BNP Paribas Peregrine Indonesia 100.00% 100.00%

Africa

Banque Internationale Commerce et Industrie Burkina Faso Burkina Faso 51.00% 50.37%Banque Internationale Commerce et Industrie Côte d'Ivoire Côte d'Ivoire 67.49% 67.28%Banque Internationale Commerce et Industrie Gabon Gabon 46.66% 46.66%Banque Internationale Commerce et Industrie Sénégal Senegal 54.11% 53.85%Banque Malgache de l'Océan Indien Madagascar 75.00% 75.00%Banque Marocaine du Commerce et de l'Industrie Morocco 65.05% 65.05%Banque Marocaine du Commerce et de l'Industrie Leasing Morocco 72.03% 46.86%Banque Marocaine du Commerce et de l'Industrie Offshore Morocco 100.00% 65.05%Banque pour le Commerce et l'Industrie de la Mer Rouge Djibouti 51.00% 51.00%BNP Paribas El Djazair Algeria 100.00% 100.00%BNP Paribas Le Caire Egypt 86.81% 86.81%Union Bancaire pour le Commerce et l'Industrie Tunisia 50.00% 50.00%Union Tunisienne de Leasing Tunisia 69.89% 34.95%


Europe

All In One Allemagne Germany 100.00% 99.96%Arma Beheer BV Netherlands 100.00% 99.99%Arma Nederland Netherlands 100.00% 99.99%Arma Belgique Belgium 100.00% 99.99%Artegy Ltd United Kingdom 100.00% 99.99%Arval Belgium Belgium 100.00% 99.99%Arval Ltd United Kingdom 100.00% 99.99%Arval Luxembourg Luxembourg 100.00% 99.99%Arval Nederland Netherlands 100.00% 99.99%Arval PHH Deutschland GmbH Germany 100.00% 99.99%Arval PHH Holdings Ltd (Group) United Kingdom 100.00% 99.99%Arval PHH Holdings UK Ltd United Kingdom 100.00% 99.99%Arval Polska Poland 100.00% 99.99%Arval Portugal Portugal 100.00% 99.99%Arval Service Lease Espagne Spain 99.98% 99.97%Arval Service Lease Italia Italy 100.00% 99.99%BNP Ireland Ltd Ireland 100.00% 100.00%BNP Paribas Asset Management Luxembourg Luxembourg 99.66% 99.66%BNP Paribas Asset Management SGR Milan SPA Italy 100.00% 100.00%BNP Paribas Asset Management UK Ltd United Kingdom 100.00% 100.00%



interest (%)

Groupownership

interest(%)

Other financial institutions (cont’d)Europe (cont’d)

BNP Paribas Capital Markets Group Ltd United Kingdom 100.00% 100.00%BNP Paribas Commodity Futures Ltd United Kingdom 100.00% 100.00%BNP Paribas E & B Ltd United Kingdom 100.00% 100.00%BNP Paribas Finanzaria SPA Italy 100.00% 100.00%BNP Paribas Fund Services Luxembourg 100.00% 100.00%BNP Paribas Fund Services Holdings United Kingdom 100.00% 100.00%BNP Paribas Fund Services Dublin Limited Ireland 100.00% 100.00%BNP Paribas Fund Services UK Ltd United Kingdom 100.00% 100.00%BNP Paribas Lease Group PLC (Group) United Kingdom 100.00% 99.96%BNP Paribas Lease Group SA Belgium Belgium 100.00% 99.96%BNP Paribas Lease Group SPA Italy 100.00% 99.96%BNP Paribas Leasing GmbH Germany 100.00% 99.96%BNP Paribas Lease Group Holding SPA Italy 100.00% 99.96%BNP Paribas UK Holding Ltd United Kingdom 100.00% 100.00%BNP Paribas UK Holdings Ltd United Kingdom 100.00% 100.00%BNP Paribas UK Ltd United Kingdom 100.00% 100.00%Cetelem CR Czech Republic 100.00% 100.00%Compagnie Bancaire Uk Fonds C United Kingdom 100.00% 100.00%Eurocredito Spain 100.00% 100.00%Fimestic Expansion SA Spain 100.00% 100.00%Halifax Cetelem Credit Ltd United Kingdom 100.00% 100.00%Leasing Handels und Service AG Switzerland 100.00% 99.99%Sifida Luxembourg 90.42% 93.67%Société Financière pour les pays d'Outre Mer - SFOM Switzerland 100.00% 100.00%

Americas

BNP Paribas Asset Management Incorporated - PNA United States 100.00% 100.00%BNP Paribas Brokerage Services Incorporated United States 100.00% 100.00%BNP Paribas Capital Trust LLC 1 United States 100.00% 0.00%BNP Paribas Capital Trust LLC 2 United States 100.00% 0.00%BNP Paribas Capital Trust LLC 3 United States 100.00% 0.00%BNP Paribas Capital Trust LLC 4 United States 100.00% 0.00%BNP Paribas Capital Trust LLC 5 United States 100.00% 0.00%BNP Paribas Capital Trust LLC 6 United States 100.00% 0.00%BNP Paribas Capstar Partners Inc - PNA United States 100.00% 100.00%BNP Paribas Commodities Futures Incorporated - PNA United States 100.00% 100.00%BNP Paribas Investment Services LLC United States 100.00% 100.00%BNP Paribas Securities Corporation - PNA United States 100.00% 100.00%BNP US Funding LLC United States 100.00% 100.00%Capstar Partners LLC United States 84.45% 84.45%Cooper Neff Advisors Incorporated United States 100.00% 100.00%Cooper Neff Group United States 100.00% 100.00%French American Banking Corporation - F.A.B.C - PNA United States 100.00% 100.00%Petits Champs Participaçoes e Serviços SA Brazil 100.00% 100.00%

Asia-Pacific

BNP Equities Asia Ltd Malaysia 100.00% 100.00%BNP Paribas Arbitrage (Hong Kong) Ltd Hong Kong 100.00% 100.00%BNP Paribas Asia Equities Ltd Hong Kong 100.00% 100.00%BNP Paribas Finance (Hong Kong) Ltd Hong Kong 100.00% 100.00%BNP Paribas Fund Services Australasia Pty Limited Australia 100.00% 100.00%BNP Paribas Futures (Hong Kong) Ltd Hong Kong 100.00% 100.00%BNP Paribas (New Zealand) Finance Ltd New Zealand 100.00% 100.00%BNP Paribas New Zealand Ltd New Zealand 100.00% 100.00%BNP Paribas Pacific (Australia) Ltd Australia 100.00% 100.00%BNP Paribas Peregrine Capital Ltd Hong Kong 100.00% 100.00%BNP Paribas Peregrine Securities (Thailand) Ltd Thailand 100.00% 100.00%BNP Paribas Peregrine Securities Korea Company Ltd South Korea 100.00% 100.00%BNP Paribas Peregrine Securities Ltd Hong Kong 100.00% 100.00%BNP Paribas Peregrine Securities Pte Ltd Singapore 100.00% 100.00%BNP Paribas Securities Ltd Hong Kong 100.00% 100.00%Henaross Pty Ltd Australia 100.00% 100.00%PT BNP Lippo Utama Leasing Indonesia 100.00% 100.00%



interest (%)

Groupownership

interest(%)


54 Lombard Street Investments Limited United Kingdom 100.00% 100.00%Bergues Finance Holding Bahamas 100.00% 99.99%BNP Paribas Arbitrage Issuance BV Netherlands 100.00% 100.00%BNP Paribas Emissions und Handelsgesellschaft GmbH Germany 100.00% 100.00%BNP Paribas Fixed Assets Ltd United Kingdom 100.00% 100.00%BNP Paribas UK Treasury Ltd United Kingdom 100.00% 100.00%BNP Paribas US Medium Term Notes Program LLC United States 100.00% 100.00%BNP Paribas US Structured Medium Term LLC United States 100.00% 100.00%Bougainville BV Netherlands 100.00% 100.00%Claas Leasing GmbH Germany 100.00% 89.46%Crisps Ltd Cayman Islands 100.00% 100.00%Dealremote Ltd United Kingdom 100.00% 100.00%Epimetheus Investments Ltd Cayman Islands 92.50% 92.50%European Hedged Equity Ltd Cayman Islands 95.00% 95.00%Fidex plc United Kingdom 100.00% 100.00%Forsete Investments SA Luxembourg 100.00% 0.00%Global Guaranteed Cliquet Investment Cayman Islands 95.00% 95.00%Global Guaranteed Equity Ltd Cayman Islands 95.00% 95.00%Global Hedged Equity Investment Ltd Cayman Islands 95.00% 95.00%Global Protected Alternative Investments Ltd Cayman Islands 95.00% 95.00%Global Protected Equity Ltd Cayman Islands 95.00% 95.00%Harewood Investments No.1 Ltd Cayman Islands 100.00% 100.00%Joconde SA Luxembourg 100.00% 0.00%Lock-In Global Equity Limited Cayman Islands 95.00% 95.00%Mexita Ltd No. 2 Cayman Islands 90.00% 90.00%Mexita Ltd No. 3 Cayman Islands 90.00% 90.00%Mexita Ltd No. 4 Cayman Islands 90.00% 90.00%Mistral Investments SA Luxembourg 100.00% 0.00%Sirocco Investments SA Luxembourg 100.00% 0.00%Tender Option Bond Municipal Program SPV United States 100.00% 100.00%Utexam Ltd Ireland 100.00% 100.00%

Other companies

IN FRANCE

Real estate

Atis Real Expertise 100.00% 100.00%Atis Real International (Group) 100.00% 100.00%BNP Paribas Immobilier (1) 100.00% 100.00%BNP Paribas Participations Finance Immobilier (1) 100.00% 100.00%GIE Klépierre Services (formerly Klépierre Services) 100.00% 46.77%Holding Gondomar 1 100.00% 53.30%Holding Gondomar 3 100.00% 53.30%Immobilière des Bergues (1) 100.00% 100.00%Meunier Promotion (Group) (1) 100.00% 100.00%SA Klépierre 53.52% 53.30%SAS 192 avenue Charles De Gaulle 100.00% 53.30%SAS 21 Kléber 100.00% 53.30%SAS 21 La Perouse 100.00% 53.30%SAS 23 avenue de Marignan 100.00% 53.30%SAS 43 Grenelle 100.00% 53.30%SAS 43 Kléber 100.00% 53.30%SAS 46 Notre-Dame des victoires 100.00% 53.30%SAS 5 Turin 100.00% 53.30%SAS Baudot Massy 100.00% 53.30%SAS Brescia 100.00% 53.30%SAS Candé 100.00% 53.29%SAS Cecoville 100.00% 53.30%SAS Centre Jaude Clermont 99.99% 53.29%SAS Concorde Puteaux 100.00% 53.30%SAS Doumer Caen 99.96% 53.28%SAS Espace Dumont D'Urville 100.00% 53.30%SAS Espace Kléber 100.00% 53.30%


Other companies Groupvoting

interest (%)

Groupownership

interest(%)

IN FRANCE

Real estate (cont’d)

SAS Flandre 100.00% 53.30%SAS Issy Desmoulins 100.00% 53.30%SAS Kléber Levallois 100.00% 53.30%SAS Klecar Europe Sud 83.00% 44.24%SAS Klecar Participations Italie 83.00% 44.24%SAS Klefinances (1) 100.00% 100.00%SAS Klégestion 100.00% 53.30%SAS Klémurs 100.00% 53.30%SAS Klépierre Conseil 100.00% 53.30%SAS Klépierre Finance 100.00% 53.30%SAS Klépierre Hongrie 100.00% 53.30%SAS Klépierre Transactions 100.00% 53.30%SAS Le Havre Capelet 100.00% 53.30%SAS Le Havre Tourneville 100.00% 53.30%SAS Leblanc Paris 15 100.00% 53.30%SAS LP7 100.00% 53.30%SAS Marseille le Merlan 100.00% 53.30%SAS Melun Saint-Pères 99.98% 53.29%SAS Odysseum Place de France 70.00% 37.31%SAS Opale 100.00% 53.30%SAS Poitiers Aliénor 100.00% 53.30%SAS Saint-André Pey berland 100.00% 53.30%SAS Secmarne 100.00% 53.30%SAS Ségécé 75.00% 39.97%SAS Ségécé Loisirs Transactions 100.00% 39.97%SAS Socoseine 100.00% 49.97%SAS Strasbourg La Vigie 99.85% 53.22%SAS Suffren Paris 15 100.00% 53.30%SAS Toulouse Mermoz 100.00% 53.30%SAS Tours Nationale 100.00% 53.30%SC Centre Bourse 100.00% 53.30%SC Solorec 88.00% 42.64%SCI Aurora 100.00% 53.30%SCI Bègles Papin 100.00% 53.30%SCI Noblecafétaria 100.00% 53.30%SCI Noble-Galerie 100.00% 53.30%SCI Noblerestauration 100.00% 53.30%SCI Orengal 100.00% 53.30%SCI Rueil Caudron 100.00% 99.98%SCI Secovalde 40.00% 21.32%SCI Tour Marcel Brot 100.00% 53.30%Setic (1) 100.00% 100.00%SNC Barjac Victor 100.00% 53.30%SNC CB Pierre 100.00% 53.30%SNC Foncière Saint Germain 100.00% 53.30%SNC Galae 100.00% 46.50%SNC Général Leclerc 11-11bis Levallois 100.00% 53.30%SNC Jardins des Princes 100.00% 53.30%SNC KC1 100.00% 44.24%SNC KC2 100.00% 44.24%SNC KC3 100.00% 44.24%SNC KC4 100.00% 44.24%SNC KC5 100.00% 44.24%SNC KC6 100.00% 44.24%SNC KC7 100.00% 44.24%SNC KC8 100.00% 44.24%SNC KC9 100.00% 44.24%SNC KC10 100.00% 44.24%SNC KC11 100.00% 44.24%SNC KC12 100.00% 44.24%SNC KC20 100.00% 44.24%SNC Kléber La Pérouse 100.00% 53.30%SNC Klecar France 83.00% 44.24%SNC Klétransactions 100.00% 53.30%



interest (%)

Groupownership

interest(%)

IN FRANCE

Real estate (cont’d)

SNC Maille Nord 100.00% 53.30%SNC Soccendre 100.00% 40.11%SNC Sodevac 100.00% 53.30%Société Auxiliaire de Construction Immobilière - SACI (1) 100.00% 100.00%

Insurance

BNP Paribas Assurance (1) 100.00% 100.00%Cardif RD (1) 100.00% 100.00%Cardif SA (1) 100.00% 100.00%Cardif Assurance Vie (formerly Cardif Sté Vie) (1) 100.00% 100.00%GIE BNP Paribas Assurance 59.50% 59.50%Natiovie (1) 100.00% 100.00%

Other business units

Antin Participation 4 (1) 100.00% 100.00%Antin Participation 5 (1) 100.00% 100.00%Antin Participation 7 (1) 95.77% 95.77%Antin Participation 13 99.99% 95.75%Antin Vendôme 96.77% 96.77%Bincofi (1) 100.00% 100.00%BNP Paribas BDDI Participations (1) 100.00% 100.00%BNP Paribas Peregrine Group 100.00% 100.00%BNP Paribas Stratégies Actions (1) 100.00% 100.00%Capefi (1) 100.00% 100.00%Compagnie Auxiliaire d'Entreprises et de Chemins de Fer (1) 99.99% 99.99%Compagnie Immobilière de France (1) 100.00% 100.00%F G Ingenerie et Promotion Immobilière 100.00% 100.00%Foncière de la Compagnie Bancaire (1) 100.00% 100.00%Groupement Auxiliaire de Moyens - GAM 100.00% 100.00%Immobilier Marché Saint-Honoré (1) 100.00% 100.00%Kle 65 (1) 100.00% 100.00%Kle 66 (1) 100.00% 100.00%Norbail Location (1) 100.00% 99.96%Omnium Gestion Développement Immobilier (1) 100.00% 100.00%Paribas International (1) 100.00% 100.00%Quatch (1) 99.96% 99.96%SAS 5 Kléber (1) 100.00% 100.00%Sinvim (1) 100.00% 100.00%Société Centrale d'Investissement (1) 100.00% 100.00%

OUTSIDE FRANCE

Insurance

BNP de Réassurance au Luxembourg Luxembourg 100.00% 100.00%Cardif Assicurazioni SPA Italy 100.00% 100.00%Cardif do Brasil Seguros Brazil 100.00% 100.00%Cardif Leven Belgium 100.00% 100.00%Cardif Levensverzekeringen NV Netherlands 100.00% 100.00%Cardif Nederland Holding BV Netherlands 100.00% 100.00%Cardif Schadeverzekeringen NV Netherlands 100.00% 100.00%Compania de Seguros Generales Chile 100.00% 100.00%Cybele RE Luxembourg 100.00% 100.00%Darnell Limited Ireland 100.00% 100.00%Investlife SA Luxembourg 100.00% 100.00%Luxpar-Ré Luxembourg 100.00% 100.00%Pinnacle Insurance United Kingdom 100.00% 97.53%Pinnacle Insurance Holdings United Kingdom 97.53% 97.53%Pinnacle Insurance Management Services United Kingdom 100.00% 97.53%



interest (%)

Groupownership

interest(%)

OUTSIDE FRANCEReal estate

Arcol Slovakia 100.00% 53.30%Capucines BV Netherlands 100.00% 53.30%C G Collegno Italy 100.00% 53.30%Centre Duna Hungary 100.00% 53.30%Centre Nyiregyhaza Hungary 100.00% 53.30%Centre Szeged Hungary 100.00% 53.30%Centre Szolnok Hungary 100.00% 53.30%Centre Zalaegerszeg Hungary 100.00% 53.30%Centro Shopping Gestion Italy 75.00% 39.97%Cinéma de l'Esplanade Belgium 100.00% 53.30%Coimbra Belgium 100.00% 53.30%Delcis Cr Czech Republic 99.00% 42.76%Ejesur Spain 100.00% 100.00%Foncière de Louvain-la-Neuve Belgium 100.00% 53.30%F M C Central Europe SRO Czech Republic 75.00% 29.98%Galieria Commerciale Seravalle Italy 100.00% 53.30%Holding Csepel 2002 Kft Hungary 100.00% 53.30%Holding Debrecen 2002 Kft Hungary 100.00% 53.30%Holding Gyor 2002 Kft Hungary 100.00% 53.30%Holding Kanizsa 2002 Kft Hungary 100.00% 53.30%Holding Kaposvar 2002 Kft Hungary 100.00% 53.30%Holding Miskolc 2002 Kft Hungary 100.00% 53.30%Holding Uj Alba Kft Hungary 100.00% 53.30%I.C.D SPA Italy 85.00% 45.30%Immobiliare Magnolia Italy 85.00% 45.30%Klecar Foncier Espana Spain 100.00% 44.24%Klecar Foncier Iberica Spain 100.00% 44.24%Klecar Italia SPA Italy 100.00% 44.24%Klefin Italia SPA Italy 100.00% 53.30%Klelou SA Portugal 100.00% 53.30%Klénord Imobiliaria Portugal 100.00% 53.30%Klépierre Athinon AE Greece 100.00% 44.24%Klépierre NEA Efkarpia AE Greece 100.00% 44.24%Klépierre Peribola Patras AE Greece 100.00% 44.24%Klépierre Portugal SA SGPS Portugal 100.00% 53.30%Klépierre Vallecas Spain 100.00% 53.30%Klepierre Vinaza Spain 100.00% 53.30%Klétel Immobiliaria Portugal 100.00% 53.30%KFM Makedonia Greece 100.00% 44.24%Novate SRL Italy 85.00% 45.30%Sogecaec Portugal 100.00% 39.97%

Other business units

BNP Paribas Capital Investments Ltd United Kingdom 100.00% 100.00%BNP Paribas Fleet Holdings Ltd United Kingdom 100.00% 99.99%BNP Paribas International BV Netherlands 100.00% 100.00%BNP Paribas North America Incorporated – PNA United States 100.00% 100.00%BNP Paribas RCC Incorporation - PNA United States 100.00% 100.00%BNP Paribas Services Switzerland 100.00% 99.99%Cetelem America Brazil 100.00% 100.00%Claireville Belgium 100.00% 100.00%Cobema Belgium 100.00% 100.00%Cobepa Technology Belgium 100.00% 100.00%Compagnie Bancaire Uk Fonds B United Kingdom 100.00% 100.00%Compagnie Financière Ottomane Luxembourg 96.58% 96.58%Gepeco Belgium 100.00% 100.00%Paribas Management Services Ltd United Kingdom 100.00% 100.00%Paribas North America United States 100.00% 100.00%Paribas Participation Limitee Canada 100.00% 100.00%Paribas Trust Luxembourg Luxembourg 100.00% 100.00%Parritaye Pty Ltd Australia 100.00% 100.00%Placement, Gestion, Finance Holding - Plagefin Luxembourg 99.99% 99.99%Sagip Belgium 100.00% 100.00%


PROPORTIONALLY-CONSOLIDATED COMPANIES Groupvoting

interest (%)

Groupownership

interest(%)

Financial institutions

OUTSIDE FRANCE

Credit institutions

Europe

BNP AK Dresdner Bank AS Turkey 30.00% 30.00%Findomestic Italy 50.00% 50.00%


Europe

BNP AK Dresdner Financial Kiralama Turkey 29.99% 29.99%

Other companies

IN FRANCE

Insurance

Natio Assurance 50.00% 50.00%

Real estate

SAS Bègles Arcins 50.00% 26.65%SAS Cecobil 50.00% 26.65%SAS Soaval 50.00% 19.99%SAS Espace Cordeliers 50.00% 26.65%SAS Le Havre Lafayette 50.00% 26.65%SAS Le Havre Vauban 50.00% 26.65%SCI Antin Vendôme 50.00% 26.65%SCI du Bassin Nord 50.00% 26.65%

OUTSIDE FRANCE

Insurance

Centro Vita Assicurazioni SPA Italy 49.00% 49.00%

Real estate

Effe Kappa SRL Italy 50.00% 26.65%Galiera Parque Nascente SA Portugal 50.00% 26.65%Gondobrico Portugal 50.00% 26.65%I G C Italy 50.00% 26.65%Plaza Centers Management Hungary 50.00% 26.65%P S G Italy 50.00% 19.99%

COMPANIES CARRIED UNDER THE EQUITY METHOD

Financial institutions

IN FRANCE

Credit institutions

Axa Banque Financement (formerly Axa Crédit) 35.00% 35.00%Caisse d'Epargne Financement - CEFI 33.00% 33.00%Cofidis International Group 15.00% 15.00%Cofinoga (Group) 44.00% 44.00%Société Paiement PASS 40.01% 40.01%


COMPANIES CARRIED UNDER THE EQUITY METHOD Groupvoting

interest (%)

Groupownership

interest(%)

Other financial sector company

Verner Investissements (Group) 38.90% 38.90%

OUTSIDE FRANCE

Credit institutions

Europe

Fortis Crédit Belgium 45.00% 45.00%Servicios Financieros Carrefour EFC SA Spain 40.00% 40.00%


Europe

Centro Leasing SPA Italy 37.30% 37.28%

Americas

Carrefour Administration Cartos de Creditos - CCAC Brazil 40.00% 40.00%

Other companies

IN FRANCE

Other

BNP Paribas Partners for Innovation 50.00% 50.00%Finaxa 13.04% 20.90%Laser 9.01% 9.01%

OUTSIDE FRANCE

Real estate

Devimo Consult Belgium 35.00% 13.99%Galiera Comerciale Assago Italy 20.00% 20.00%

Other

Compagnie Benelux de Participations - Cobepa Belgium 25.00% 25.00%Cobepa - Cippar Belgium 25.00% 25.00%Cobepa - Cobepa Finance Luxembourg 25.00% 25.00%Cobepa - Compagnie de Participations Internationales NV Netherlands 25.00% 25.00%Cobepa - Copabel SA Belgium 25.00% 25.00%Cobepa - Groupe Financier Liégeois Belgium 24.90% 24.90%Cobepa - Ibel Belgium 25.00% 25.00%Cobepa - Mascagni Belgium 25.00% 25.00%Cobepa - Paribas Deelnemingen NV Netherlands 25.00% 25.00%Cobepa - Regio Invest Ontwik Maats Belgium 25.00% 25.00%Cobepa - SA Mosane Belgium 25.00% 25.00%Cobepa - Sté Financière et de Réalisation Belgium 25.00% 25.00%Cobepa - Tradexco SA Belgium 25.00% 25.00%Cobepa - Ulran Luxembourg 25.00% 25.00%Fischer Francis Trees and Watts United States 24.90% 81.44%

- 29 -

NOTE 3 – INTERBANK AND MONEY MARKET ITEMS

In millions of euros, at 31 December 2004 2003 2002

Gross (Provisions) Net Net Net

Cash and amounts due from centralbanks and post office banks

6,843 - 6,843 5,287 9,884

Treasury bills and money marketinstruments (note 5) 128,452 (52) 128,400 106,671 83,990

Due from credit institutions

Demand accounts 7,116 (28) 7,088 7,062 9,426 Term loans and time deposits (a) 21,173 (256) 20,917 22,322 22,938

Repurchase agreements:Securities received under resale agreements 150,741 - 150,741 131,137 112,100 Bills purchased outright or under resaleagreements 1,128 - 1,128 1,817 1,730

________ ________ ________ ________ _______Total securities and bills purchased outrightor under resale agreements 151,869

-151,869 132,954 113,830

Subordinated loans 569 - 569 612 318 ________ ________ ________ ________ _______

Total due from credit institutions 180,727 (284) 180,443 162,950 146,512

Total interbank and money marketitems 316,022 (336) 315,686 274,908 240,386

Including accrued interest 780 1,538 3,228

(a) “Term loans and time deposits” include overnight and term loans which are not represented by a bill or security, particularly financial credits.Financial credits correspond to commercial loans with an initial term of more than one year granted to credit institutions, where the ultimateborrowers are business entities other than financial sector companies, generally from developing countries on which the transfer risk has beenprovided for (note 8).

- 30 -

BNP PARIBAS GROUPNOTE 4 – CUSTOMER ITEMS

2 0 0 4 2 0 0 3 2 0 0 2In millions of euros, at 31 December

Gross Provisions Net Net Net

Due from customersCommercial and industrial loans 12,381 - 12,381 10,041 11,806 Overdrafts 14,555 - 14,555 12,822 12,908

Other credits:

� short-term loans 55,046 - 55,046 44,145 50,503 � mortgage loans 57,851 - 57,851 46,739 42,701 � investment loans 26,212 - 26,212 22,031 22,452 � export loans 9,958 - 9,958 4,531 4,462 � other customer loans 34,525 (833) 33,692 36,384 38,024

_______ _______ _______ _______ _______Total other credits 183,592 (833) 182,759 153,830 158,142

Doubtful customer loans 11,045 (7,513) 3,532 4,250 4,385 Accrued interest 949 - 949 1,217 1,277

Securities and bills purchased outright orunder resale agreements 23,146 - 23,146 19,319 16,103

Subordinated loans (a) 193 (7) 186 132 98 ________ ________ ________ ________ ________

Total due from customers (b) 245,861 (8,353) 237,508 201,611 204,719

Leasing receivables 20,989 (417) 20,572 20,362 20,622

Total customer items 266,850 (8,770) (c) 258,080 221,973 225,341

Including accrued interest 1,168 1,494 1,620

(a) Participating loans granted to BNP Paribas customers included under “Subordinated loans” amounted to EUR 77 million at 31 December2004 (EUR 59 million at 31 December 2003 and EUR 53 million at 31 December 2002).

(b) Loans qualifying for refinancing by Banque de France amounted to EUR 9,904 million at 31 December 2004 (EUR 7,879 million at31 December 2003 and EUR 8,079 million at 31 December 2002).

(c) Including EUR 851 million in general provisions for country risks.

Total customer items, excluding repurchase agreements and provisions for country risks, break down as follows bycounterparty:

2 0 0 4 2 0 0 3

In millions of euros,at December 31

Financialinstitutions

Corporate Small-businesses

PrivateIndividuals

GovernmentAgencies

Other Total Total

Sound loans 9,787 115,990 16,018 82,094 6,618 1,405 231,912 198,908

Including restructuredloans

5 36 455 92 588 398

Doubtful loansGross outstanding loans 114 7,048 733 3,687 200 10 11,792 13,252

Including irrecoverableloans

82 4,313 630 2,858 130 10 8,023 8,730

Specific provisions (50) (4,642) (512) (2,607) (101) (7) (7,919) (8,543)Net outstanding loans 64 2,406 221 1,080 99 3 3,873 4,709

Total, net 9,851 118,396 16,239 83,174 6,717 1,408 235,785 203,617

Net irrecoverable loans – which amounted to EUR 8,023 million at 31 December 2004 (EUR 8,730 million at 31 December2003) – were covered by a EUR 5,746 million provision (EUR 5,523 million at 31 December 2003).

- 31 -

BNP PARIBAS GROUP

NOTE 5 - TRANSACTIONS ON TRADING ACCOUNT SECURITIES, SECURITIES AVAILABLE FOR SALE AND DEBTSECURITIES HELD TO MATURITY


Grossvalue

ProvisionsNet book

valueMarketvalue

Net bookvalue

Marketvalue

Net bookvalue

Marketvalue

Trading account securities:

Treasury bills and money marketinstruments

90,497 - 90,497 90,497 73,822 73,822 54,453 54,453

Bonds and other fixed incomeinstruments

46,191 - 46,191 46,191 34,217 34,217 24,707 24,707

Equities and other variable incomeinstruments 69,815

-69,815 69,815 50,442 50,442 21,149 21,149

Own shares held within the Group 7 - 7 7 80 80 14 14 Total trading account securities 206,510 - 206,510 206,510 158,561 158,561 100,323 100,323 Including unlisted equities and bonds 15,174 - 15,174 15,174 7,968 7,968 4,806 4,806

Securities available for sale:


5,347 (52) 5,295 5,376 8,045 8,403 7,254 7,830


12,145 (389) 11,756 11,757 14,672 14,957 9,642 10,213

Equities, other variable incomeinstruments and equity securitiesavailable for sale in the medium-term

2,595 (163) 2,432 2,500 1,984 2,101 1,453 1,547

Total securities available for sale20,087 (604) 19,483 19,633 24,701 25,461 18,349 19,590

Including unlisted equities and bonds 2,818 (160) 2,658 2,685 2,669 2,724 1,541 1,556

Debt securities held to maturity:


32,608 - 32,608 33,267 24,804 24,889 22,283 22,735


8,967 (15) 8,952 9,066 6,116 6,643 7,615 8,009

Total debt securities held to maturity 41,575 (15) 41,560 42,333 30,920 31,532 29,898 30,744

Including unlisted bonds 998 (2) 996 1,023 359 369 409 414

Total trading account securities,securities available for sale and debtsecurities held to maturity (a): 268,172 (619) 267,553 268,476 214,182 215,554 148,570 150,657

IncludingTreasury bills and money marketinstruments

128,452 (52) 128,400 129,140 106,671 107,114 83,990 85,018


67,303 (404) 66,899 67,014 55,005 55,817 41,964 42,929

Including unlisted bonds 4,210 (56) 4,154 4,182 3,392 3,422 2,452 2,465

Equities and other variable incomeinstruments

72,417 (163) 72,254 72,322 52,506 52,623 22,616 22,710

Including unlisted equities 14,780 (106) 14,674 14,700 7,604 7,639 4,304 4,311

(a) Mutual fund shares held by the BNP Paribas Group amounted to EUR 16,489 million at 31 December 2004 (EUR 12,081 million at 31 December 2003and EUR 4,437 million at 31 December 2002). This amount includes EUR 16,094 million in growth funds, of which EUR 832 million incorporated inFrance (EUR 11,777 million in 2003, of which EUR 565 million incorporated in France, and EUR 4,246 million in 2002, of which EUR 791 millionincorporated in France).

- 32 -

BNP PARIBAS GROUP

NOTE 5 – TRANSACTIONS ON TRADING ACCOUNT SECURITIES, SECURITIES AVAILABLE FOR SALE AND DEBTSECURITIES HELD TO MATURITY (cont’d)

Over the past three years, securities were reclassified among the various portfolios as follows:

Former classification New classificationAmount transferred

during the year (in millions of euros)

2004 2003 2002

Trading account securities Securities available for sale 1,371 830 575Securities available for sale Debt securities held to maturity 2,792 5 270Debt securities held tomaturity

Securities available for sale 34 628 769

The above amounts do not include arms’ length transactions between two Group companies pursuing different managementobjectives (including purchases of debt securities held to maturity from trading portfolio managers).

Net premiums on debt securities held to maturity, reflecting an acquisition price higher than the redemption price, amounted toEUR 311 million at 31 December 2004 (net premiums of EUR 71 million at 31 December 2003 and net discounts of EUR 364million at 31 December 2002). These premiums and discounts are amortised over the remaining life of the securities.

Net premiums on securities available for sale, reflecting an acquisition price higher than the redemption price, amounted toEUR 43 million at 31 December 2003 (net premiums of EUR 49 million at 31 December 2003 and net discounts of EUR 181million at 31 December 2002). These premiums and discounts are amortised over the remaining life of the securities.

Receivables corresponding to securities lent amounted to EUR 15,045 million at 31 December 2004 (EUR 11,065 million at31 December 2003 and EUR 5,051 million at 31 December 2002).

Accrued interest on fixed income securities was EUR 474 million at 31 December 2004 (EUR 601 million at 31 December 2003and EUR 506 million at 31 December 2002).

One of the Group subsidiaries engaged in trading and arbitraging on stock market indexes held 125,000 BNP Paribas SAshares at 31 December 2004, under trading account securities (note 22).

- 33 -

BNP PARIBAS GROUP

NOTE 6 – INSURANCE COMPANY INVESTMENTS


Real estate 1,173 1,103 1,141

Equities, mutual funds and other variable income instruments 4,364 2,944 2,613

Bonds and other fixed income instruments 35,800 33,153 30,323

Admissible assets related to unit-linked business 24,058 22,530 20,734

Reinsurers’ share of technical reserves 2,075 1,030 919

Other 1,062 648 629

Accrued interest 969 867 795

Insurance company investments 69,501 62,275 57,154

- 34 -

BNP PARIBAS GROUP

NOTE 7 – INVESTMENTS IN NON-CONSOLIDATED UNDERTAKINGS, OTHER PARTICIPATING INTERESTS AND EQUITYSECURITIES HELD FOR LONG-TERM INVESTMENT


Gross bookvalue

Net bookvalue

Marketvalue

Net bookvalue

Marketvalue

Net bookvalue

Marketvalue

Equity securities held for long-term investment

Unlisted securities 2,234 1,923 2,076 2,405 2,908 2,620 3,245 Listed securities 1,760 1,591 2,992 2,207 3,339 2,787 3,875

Total equity securities held for long-terminvestment

3,994 3,514 5,068 4,612 6,247 5,407 7,120

Investments in non-consolidated undertakings andother participating interests (a):

Investments in non-consolidated undertakings 1,920 1,517 1,776 842 947 887 1,032

Other participating interestsUnlisted securities 814 677 800 730 808 1,116 1,482 Listed securities 537 415 1,025 588 1,097 3,869 3,743

______ ______ ______ ______ ______ ______ ______Total other participating interests 1,351 1,092 1,825 1,318 1,905 4,985 5,225

Total investments in non-consolidatedundertakings and other participating interests 3,271 2,609 3,601 2,160 2,852 5,872 6,257

Total investments in non-consolidatedundertakings, other participating interestsand equity securities held for long-terminvestment

7,265 6,123 8,669 6,772 9,099 11,279 13,377

(a) The market value of unlisted investments in non-consolidated undertakings and other unlisted participating interests is principally determined based on the valueof the BNP Paribas Group’s equity in the underlying net assets. Where necessary, the valuation is based on revalued net assets.

Investments in non-consolidated credit institutions amounted to EUR 391 million at 31 December 2004 (EUR 144 million at 31December 2003 and EUR 144 million at 31 December 2002). Participating interests in credit institutions amounted to EUR 461million at 31 December 2004 (EUR 467 million at 31 December 2003 and EUR 3,566 million at 31 December 2002).

Net unrealised capital gains on investments in non-consolidated undertakings, other participating interests and equity securitiesheld for long-term investment, calculated by reference to year-end market prices for listed securities, amounted toEUR 2,546 million at 31 December 2004 (EUR 2,327 million at 31 December 2003 and EUR 2,098 million at 31 December2002).

- 35 -

BNP PARIBAS GROUP

NOTE 7 – INVESTMENTS IN NON-CONSOLIDATED UNDERTAKINGS, OTHER PARTICIPATING INTERESTS AND EQUITYSECURITIES HELD FOR LONG-TERM INVESTMENT (cont’d)

The main companies carried under “Investments in non-consolidated undertakings, other participating interests and equitysecurities held for long-term investment” with a net book value of more than EUR 100 million in the BNP Paribas Group’saccounts are listed below:

In millions of euros

% interest Head office Consolidatedshareholders’

equity in 2003 (a)

2003consolidated net

income (loss)

Net book value inthe BNP ParibasGroup accounts

Interests representing less than 5% of theinvestee’s share capital

Total 0.21 La Défense 30,406 7,025 164Véolia Environnement 1.84 Paris 3,575 (2,055) 145Shinhan Financial Group 4.39 Seoul (South Korea) 3,676 277 143Peugeot 1.53 Paris 11,864 1,497 114Sagem 4.05 Paris 1,178 120 112Schneider Electric 1.92 Boulogne Billancourt 7,659 433 105

Interests representing between 5% and 10%of the investee’s share capital

Bouygues Telecom 6.41 Issy Les Moulineaux 1,553 198 171Cassa Di Risparmio Di Firenze 6.99 Florence (Italy) 958 95 118

Interests representing more than 10% of theinvestee’s share capital

Pargesa Holding 14.58 Geneva (Switzerland) 3,895 136 357Erbe SA 47.01 Gerpinnes (Belgium) 670 26 335 Tyler Trading Inc 19.03 Wilmington (USA) 1,705 43 294ABN Amro Advisory Inc 19.35 Chicago (USA) 1,283 42 221Crédit Logement 16.50 Paris 1,231 49 207Eiffage 19.16 Issy Les Moulineaux 1,012 140 107

Interests in investment fundsPAI Europe III 13.77 Paris N/A N/A 134 PAI LBO Fund 62.43 Paris N/A N/A 123

(a) According to French accounting standards, including net income/(loss)

- 36 -

BNP PARIBAS GROUP

NOTE 8 – PROVISIONS FOR CREDIT RISKS AND COUNTRY RISKS


At 1 January 11,705 13,029 13,171 Net additions during the period 693 1,379 1,532 Write-offs during the period covered by provisions (1,497) (1,724) (1,470)Translation adjustments and other changes (322) (979) (204)

At 31 December 10,579 11,705 13,029

Breakdown of provisions:� Provisions deducted from assets:

� On interbank items (a) 284 256 416 � On customer items (note 4) 8,770 9,506 10,347 � On securities (a) 443 746 1,009

_______ _______ _______Total provisions deducted from assets 9,497 10,508 11,772 Including provisions for country risks 1,211 1,481 2,119

� Provisions recorded under liabilities (note 19):

� To cover off balance sheet commitments 428 505 570 � To cover credit risks 654 692 469 � To cover industry risks - - 218

_______ ______ ______Total provisions recorded under liabilities 1,082 1,197 1,257 Including provisions for country risks 258 314 309

Total provisions for credit risks and country risks 10,579 11,705 13,029

(a) Provisions on loans to credit institutions mainly concern financial credits (note 3) exposed to country risk. Provisions on securities shown inthe above table primarily cover the country risk affecting securities held by the BNP Paribas Group.

Provisions for credit risks on assets are deducted from the carrying value of the assets. Provisions recorded under liabilitiesinclude provisions for losses on off balance sheet commitments, provisions for claims and litigation, and provisions for risks thatare probable in light of current or past events but the amount and timing of which cannot be reliably determined.

Provisions covering principal and interest on sovereign loans amounted to EUR 1,469 million at 31 December 2004(EUR 1,795 million at 31 December 2003 and EUR 2,428 million at 31 December 2002).

- 37 -

BNP PARIBAS GROUP

NOTE 8 – PROVISIONS FOR CREDIT RISKS AND COUNTRY RISKS (cont’d)


Additions to provisions for credit risks and country risks:� Customer and interbank items 1,855 2,278 2,533 � Off balance sheet commitments 68 51 93 � Securities 78 214 87 � Other credit risks 331 367 112

Total additions to provisions for credit risks and country risks 2,332 2,910 2,825

Recoveries of provisions for credit risks and country risks:� Customer and interbank items (1,154) (1,137) (1,024)� Off balance sheet commitments (60) (38) (38)� Securities (73) (226) (132)� Other credit risks (352) (130) (99)

Total recoveries of provisions for credit risks and country risks (1,639) (1,531) (1,293)

Net additions to provisions for credit risks and country risks 693 1,379 1,532 Write-offs not covered by provisions 136 187 146 Recoveries of amounts written off (97) (104) (101)Elimination of net addition to provisions for interest in arrears recordedunder net banking income (54) (101) (107)

Net charge for the period for credit risks and country risks 678 1,361 1,470

Including:� Net charge to provisions for specific credit risks 902 1,727 1,555 � Net recovery of provisions for country risks (224) (366) (85)

- 38 -

BNP PARIBAS GROUP

NOTE 9 – INVESTMENTS IN COMPANIES CARRIED UNDER THE EQUITY METHOD

Total investments in companies carried under theequity method

In millions of euros, at 31 December 2004 Equity in netassets (based

on votinginterest)

Equity in 2004net income

(loss) (basedon votinginterest)

Total

Net book valueof the

investments inthe individualaccounts of

Groupcompanies

Financial institutions:

Credit institutions 449 99 548 302

Cofinoga 241 50 291 130 Société de paiement pass 85 19 104 35 Cofidis International Groupe 39 17 56 13 Servicios Financieros Carrefour EFC SA 52 9 61 87 Other 32 4 36 37

Other financial institutions 174 15 189 217

Centro Leasing SPA 52 5 57 42 CCAC Brazil 28 13 41 38 Other 94 (3) 91 137

Total financial institutions 623 114 737 519

Other companies:

Laser 32 6 38 53 Finaxa 823 64 887 492 Fischer Francis Trees and Watts (2) 5 3 71 Cobepa 82 3 85 100 Other 9 2 11 8

Total other companies 944 80 1,024 724

Total investments in companies carried under the equitymethod 1,567 194 1,761 1,243

- 39 -

B N P P A R I B A S G R O U PNOTE 10 – LONG-TERM INVESTMENTS

In millions of euros

Cost at 1January

2004

Acquisitions Redemptionsand

disposals

Transfersand other

movements

Cost at 31Dec. 2004

Provisions at1 Jan. 2004

Additions toprovisions

Recoveriesof provisions

Otherprovision

movements

Provisions at31 Dec.

2004

Net bookvalue at31 Dec.

2004

Net bookvalue at31 Dec.

2003

Debt securities held to maturity (note 5) 30,965 70,830 (62,384) 2,164 41,575 (45) - 1 29 (15) 41,560 30,920

Investments in non-consolidatedundertakings and other participatinginterests (note 7)

2,912 412 (511) 458 3,271 (752) (71) 224 (63) (662) 2,609 2,160

Equity securities held for long-terminvestment (note 7)

5,358 463 (1,194) (633) 3,994 (746) (119) 330 55 (480) 3,514 4,612

Investments in companies carried under theequity method (note 9) 1,631 130 1,761 1,761 1,631

Total long-term investments 40,866 71,705 (64,089) 2,119 50,601 (1,543) (190) 555 21 (1,157) 49,444 39,323

- 40 -

BNP PARIBAS GROUPNOTE 11 – TANGIBLE AND INTANGIBLE ASSETS

2004 2003 2002In millions of euros, at 31 December

Gross Depreciationamortisation and

provisions

Net Net Net

Intangible assets

- Computer software 2,143 (1,306) 837 698 538 - Other intangible assets 965 (224) 741 789 749

______ ______ ______ ______ ______Total intangible assets 3,108 (1,530) 1,578 1,487 1,287

Tangible assets:

- Land and buildings 3,578 (1,211) 2,367 2,123 2,076 - Rental properties (land and buildings) 4,494 (679) 3,815 3,397 3,062 - Equipment, furniture and fixtures 4,328 (2,874) 1,454 1,600 1,695 - Other fixed assets 369 (1) 368 401 520

______ ______ ______ _______ ______Total tangible assets 12,769 (4,765) 8,004 7,521 7,353

Total tangible and intangible assets 15,877 (6,295) 9,582 9,008 8,640

Intangible assets

Other intangible assets include lease rights, goodwill and trade marks acquired by the Group, including the Consors trade mark acquiredin 2002.

Operating assets

In 1991 and 1992, as allowed by French regulations, Banque Nationale de Paris transferred its main operating real estate holdings to itssubsidiary Compagnie Immobilière de France. The book value of the assets was increased by EUR 1,156 million, and the correspondingcapital gain was posted to consolidated shareholders’ equity under “capital gains on restructuring”, net of the related tax effect (note 22).In order to reflect what appeared to be a lasting decline in the real estate market, in 1997 the book value of these real estate assets waswritten down by EUR 545 million. The adjustment, net of the related tax effect, was recorded in the balance sheet under “capital gains onrestructuring”, consistently with the initial adjustment.

The operating assets held by Paribas and its subsidiaries at the time of the merger are stated at historical cost.

Depreciation and provisions on rental properties include a EUR 77 million provision booked in accordance with the principle of prudenceto cover unrealised losses on the rental properties held by Compagnie Bancaire.

Non-operating assets

At 31 December 2004, non-operating land and buildings, including assets leased under operating leases, amounted to EUR 3,844 million(EUR 3,454 million at 31 December 2003 and EUR 3,122 million at 31 December 2002). The total includes shopping centres acquired forrental.

Depreciation, amortisation and provisions

The charge for depreciation, amortisation and provisions recorded in 2004 amounted to EUR 755 million (EUR 758 million in 2003 andEUR 618 million in 2002).

- 41 -

BNP PARIBAS GROUP

NOTE 12 – GOODWILL


Net amount at 1 January 5,578 6,547 4,489

Goodwill on acquisitions made during the year 1,354 50 2,988

Translation adjustment (236) (559) (397)

Amortisation for the year (408) (417) (388)

Exceptional amortisation of goodwill (44) (43) (145)

Unamortised goodwill at 31 December 6,244 5,578 6,547

Net amortisation of goodwill totalled EUR 384 million for 2004 (EUR 399 million for 2003 and EUR 366 million for 2002), after deductingEUR 24 million in amortisation of badwill (EUR 18 million in 2003 and EUR 22 million in 2002). Exceptional amortisation of goodwill oninvestments sold includes EUR 20 million (EUR 43 million in 2003 and EUR 95 million in 2002) corresponding to goodwill recorded onacquisition of minority interests in the Cobepa sub-group. An additional EUR 24 million in exceptional amortisation was recorded followingthe sale of 75% of Cobepa to a non-consolidated entity. The exceptional amortisation was deducted from “gains on long-terminvestments and changes in provisions”.

Badwill amounted to EUR 15 million at 31 December 2004 (EUR 18 million at 31 December 2003 and EUR 22 million at 31 December2002), including EUR 13 million concerning Finaxa.

Goodwill recognised in 2004 primarily concerns the acquisition of shares in Community First Bankshares and Union SafeDeposit Bank in an amount of USD 1,149 million, as well as the purchase of shares in Atis Real International and VernerInvestissements.

- 42 -

BNP PARIBAS GROUP

NOTE 13 – ACCRUED INCOME AND OTHER ASSETS


Accrued income and other adjustment accounts

Valuation adjustment accounts (a) 14,234 13,853 20,228 Accrued income 3,372 5,419 5,331 Collection accounts 3,530 2,845 3,488 Other adjustment accounts (b) 4,584 6,707 9,501 _______ _______ _______Total accrued income and other adjustment accounts 25,720 28,824 38,548

Other assets

Premiums on purchased options 39,192 42,185 36,328 Settlement accounts related to securities transactions 4,625 5,067 3,655 Investments in Codevi “industrial development” securities 3,319 3,716 3,702 Deferred tax assets 930 853 975 Other insurance company assets 1,677 1,142 931 Other 24,345 11,633 10,458 _______ _______ _______Total other assets 74,088 64,596 56,049

Total accrued income and other assets 99,808 93,420 94,597

(a) Mark-to-market gains on foreign exchange instruments and forward instruments.(b) Includes prepaid interest on customer and interbank accounts and prepaid expenses.

- 43 -

BNP PARIBAS GROUP

NOTE 14 – INTERBANK ITEMS AND MONEY MARKET SECURITIES


Interbank and money market items

Demand accounts 7,914 5,027 8,859 Time deposits and borrowings 85,780 61,740 52,808 Securities and bills sold outright or under repurchaseagreements:� Securities given under repurchase agreements 149,479 122,258 113,552 � Bills sold outright or under repurchase agreements 1,790 2,229 2,686 _______ ________ _______Total securities and bills sold outright or under repurchaseagreements 151,269 124,487 116,238

________ ________ _______Total interbank and money market items 244,963 191,254 177,905

Debt securities issued to credit institutionsInterbank market securities 1,175 1,025 1,025

Total interbank items and money market securities 246,138 192,279 178,930

Including accrued interest 793 1,785 2,273

Interbank demand deposits amounted to EUR 4,272 million at 31 December 2004 (EUR 4,906 million at 31 December 2003and EUR 8,465 million at 31 December 2002).

- 44 -

BNP PARIBAS GROUP

NOTE 15 – CUSTOMER DEPOSITS, RETAIL CERTIFICATES OF DEPOSIT AND NEGOTIABLE CERTIFICATES OF DEPOSIT


Customer deposits:

Demand accounts 84,292 69,464 70,950 Time accounts 72,341 68,899 72,150 Regulated savings accounts 39,712 36,622 31,113 Repurchase agreements:

Securities given under repurchase agreements 41,345 35,475 20,819 Bills sold outright or under repurchase agreements 22 161 537

______ ______ ______Total securities and bills sold outright or under repurchase agreements 41,367 35,636 21,356

Total customer deposits 237,712 210,621 195,569

Bonds and negotiable short-term debt instruments:

Negotiable certificates of deposit 83,844 67,014 64,913 Retail certificates of deposit 6,712 4,933 6,708

______ ______ ______Total bonds and negotiable short-term debt instruments 90,556 71,947 71,621

Total customer deposits, negotiable certificates of deposit and retailcertificates of deposit

328,268 282,568 267,190

Including accrued interest 578 648 968

Regulated demand savings deposits, including savings collected for investment, totalled EUR 20,763 million at 31 December2004 (EUR 18,272 million at 31 December 2003 and EUR 14,515 million at 31 December 2002). Other customer demanddeposits amounted to EUR 92,921 million at 31 December 2004 (EUR 76,701 million at 31 December 2003 andEUR 74,542 million at 31 December 2002).

- 45 -

BNP PARIBAS GROUP

NOTE 16 – BOND ISSUES

The following table shows bonds issued by the Group by currency, contractual interest rate and maturity:

MaturityIssuing currency in millions of euros

Averageinterest

rate

Balanceoutstanding

at31/12/2004

2005 2006 2007 2008 20092010 to

2014Beyond

2014

Eurozone issues Variable 2,867 617 912 409 200 - 31 6985.89% 8,834 549 1,741 1,366 1,535 305 2,943 395

US dollar issues Variable 705 - 150 67 - - - 4883.88% 44 - 44

Issues in other currencies Variable 224 - 40 172 126.12% 157 1 7 10 - 139

Total bonds issued 12,831 1,167 2,894 2,024 1,747 444 2,974 1,581

BNP Paribas Group bonds held by consolidatedcompanies

(1,847)

Total BNP Paribas Group bonds outstanding 10,984

Accrued interest 110

Total bond issues 11,094

Unamortised premiums on the above issues, corresponding to the difference between the issue proceeds and the redemption price,amounted to EUR 330 million at 31 December 2004 (EUR 163 million at 31 December 2003 and EUR 158 million at 31 December2002).

- 46 -

BNP PARIBAS GROUP

NOTE 17 – TECHNICAL RESERVES OF INSURANCE COMPANIES


Life technical reserves 40,244 35,910 32,684

Technical reserves – unit-linked business 24,700 22,554 21,047

Non-life technical reserves 2,098 1,694 1,409

Policyholders’ surplus 1,091 1,139 1,048

Accrued interest 1,245 511 338

Total technical reserves 69,378 61,808 56,526

Policyholders’ surplus primarily includes the funds set aside to top up the return offered to holders of life insurance policies ifnecessary in future years (EUR 592 million at 31 December 2004, EUR 615 million at 31 December 2003 and EUR 547 million at31 December 2002).

NOTE 18 – ACCRUALS AND OTHER LIABILITIES


Accruals:

Accrued liabilities 2,333 4,459 5,060Valuation adjustment accounts (a) 14,986 14,528 20,617Collection accounts 4,789 2,923 2,066Other accruals 10,250 8,585 4,806

Total accruals 32,358 30,495 32,549

Other liabilities:

Settlement accounts related to securities transactions 5,430 6,938 4,966Liabilities related to written options 41,747 43,634 37,782Liabilities related to securities transactions 102,569 88,430 57,471Deferred tax liabilities 1,462 1,417 1,685Other insurance liabilities 653 418 494Other payables and liabilities 13,909 13,488 10,889

Total other liabilities 165,770 154,325 113,287

Total accruals and other liabilities 198,128 184,820 145,836

(a) Mark-to-market losses on foreign exchange instruments and forward instruments.

- 47 -

BNP PARIBAS GROUP

NOTE 19 – PROVISIONS FOR CONTINGENCIES AND CHARGES


Provisions for pensions and other post-employment benefits (note 27) 1,349 1,467 1,245Provisions for credit risks and equivalents (note 8) 654 692 469Provisions for industry risks (note 8) - - 218 (a)Provisions for off balance sheet commitments (note 8):- credit risks 170 191 261- country risks 258 314 309Restructuring (note 41) 29 80 178Other provisions 1,304 1,301 1,464

Total provisions for contingencies and charges 3,764 4,045 4,144

(a) At 31 December 2002, the provision for industry risks was notionally earmarked to cover losses on listed investments, whereas in previousyears it was not allocated to any specific risks. In 2003, the provision was reversed to avoid duplication with the provisions booked for eachline of securities concerned (see note 37).

In 2003 a general provision of EUR 250 million was recorded under “Provisions for credit risks and equivalents” in order tocover the risk of any continuation of the economic downturn in Europe. In 2004, EUR 128 million of this amount was allocatedto cover specific risks.

Off balance sheet credit risks covered by provisions amounted to EUR 822 million at 31 December 2004 (EUR 983 million at31 December 2003 and EUR 1,222 million at 31 December 2002).

At 31 December 2004, other provisions for contingencies and charges break down as follows:

In millions of euros 1 January2004 Additions Reversals Other

movements

31December

2004

Provisions set up in connection with banking andbanking-related transactions 539 208 (293) (21) 433

- Provisions for contingencies related to capital marketstransactions 187 84 (175) 2 98

- Provisions for potential losses on long-term investments 194 56 (37) (11) 202

- Other provisions related to banking transactions 158 68 (81) (12) 133

Provisions not set up in connection with banking orbanking-related transactions 762 395 (257) (29) 871

Total other provisions for contingencies and charges 1,301 603 (550) (50) 1,304

- 48 -

BNP PARIBAS GROUPNOTE 20 – SUBORDINATED DEBT


Subordinated medium- and long-term debt 10,298 11,112 11,776

Undated subordinated debt:Undated participating subordinated notes 308 312 343

Other undated floating-rate subordinated notes:In foreign currencies 654 707 849In euros 290 290 305

_____ _____ ____Total undated floating rate subordinated notes 944 997 1,154

Undated notes 398 412 629_____ _____ _____

Total undated subordinated debt 1,650 1,721 2,126

Total subordinated debt issued by BNP Paribas Group 11,948 12,833 13,902

Accrued interest 294 393 381

Total 12,242 13,226 14,283

Subordinated medium- and long-term debt

Subordinated debt included under this heading consists of medium and long-term debentures originally issued in French francs, eurosand foreign currencies that are equivalent to debt ranking last before participating debt and securities for repayment purposes in the caseof liquidation of the Bank.

Subordinated medium- and long-term debt issued by the Group generally contains a call provision authorising BNP Paribas to buy backits securities directly in the market or through tender offers or, in the case of private placements, over the counter.

Borrowings in international markets by BNP Paribas SA or foreign subsidiaries of the BNP Paribas Group may be subject to earlyrepayment of principal and the early payment of interest due at maturity in the event that changes in applicable tax laws oblige theBNP Paribas Group issuer to compensate debtholders for the consequences of such changes. The debt securities may be called on 15to 60 days’ notice subject to approval by the banking supervisory authorities.

At 31 December 2004, subordinated medium- and long-term debt broke down as follows by maturity and by currency:

MaturityIssuing currency Total

2005 2006 2007 2008 20092010 to

2014Beyond

2014

Subordinated medium-and long-termdebt:� In euros 6,359 331 290 486 932 65 3,756 499

� In US dollars 3,137 55 166 441 - 220 1,420 835

� In other currencies 802 118 - 77 52 - 45 510

Total subordinated medium-and long-term debt 10,298 504 456 1,004 984 286 5,221 1,843

- 49 -

BNP PARIBAS GROUP

NOTE 20 – SUBORDINATED DEBT (cont’d)

Undated subordinated debt

In July 1984, pursuant to the French Law of 3 January 1983, BNP SA issued a first block of 1,800,000 undated participating subordinatednotes (titres participatifs) with a face value of FRF 1,000 for a total of EUR 274 million. Subscription rights to new undated participatingsubordinated notes were attached to each of these notes. In connection with rights exercised in the period from 1985 to 1988, BNP SAissued a total of 412,761 new undated participating subordinated notes with a face value of FRF 1,000. The notes were issued at a totalpremium of EUR 4 million. The notes are redeemable only in the event of liquidation of the Bank, but may be retired in accordance withthe terms of the law. Under this option, 219,742 notes were retired in 2004 and subsequently cancelled.

In October 1985, BNP SA issued EUR 305 million of undated floating-rate subordinated notes (titres subordonnés à durée indéterminée,or TSDI). The notes are redeemable only in the event of liquidation of the Bank. They are subordinated to all other debts of the Bank butsenior to the undated participating subordinated notes issued by BNP SA. The Board of Directors is entitled to postpone interestpayments if the shareholders’ meeting approving the financial statements declares that there is no income available for distribution. InSeptember 1986, BNP SA raised a further USD 500 million by issuing new undated floating-rate subordinated notes with characteristicssimilar to those of the French franc notes issued in 1985. In July 1986 and December 1996, Paribas SA issued undated subordinatednotes in the amounts of USD 165 million and USD 200 million respectively.

Between 1996 and 1998, BNP SA issued undated notes which may be called at the issuer's discretion, starting from a date specified inthe issuing agreement and contingent upon the consent of the Commission Bancaire.

Undated participating subordinated notes, undated subordinated notes and undated notes qualify as Tier 2 capital under Frenchregulations and international guidelines on capital adequacy.

NOTE 21 – RESERVE FOR GENERAL BANKING RISKS

The reserve for general banking risks amounted to EUR 752 million at 31 December 2004 (EUR 843 million at 31 December 2003 andEUR 997 million at 31 December 2002).

- 50 -

BNP PARIBAS GROUP

NOTE 22 – CONSOLIDATED SHAREHOLDERS’ EQUITY

In millions of eurosCapital Additional

paid-in capitalin excess of

par

Capital gain onrestructuring and

revaluationsurplus

Balance at 1 January 2002 1,772 10,476 380

. Operations affecting capital in 2002:- share issues 18 328

. Cancellation of contingent value rights certificates held by BNP Paribas

. Issue of preferred shares� BNP Paribas SA shares held pursuant to the 5th resolution of the Annual Shareholders' Meetings

of 23 May 2000 and 15 May 2001. Translation adjustment. Other (3). 2002 consolidated net income

Balance at 31 December 2002 before appropriation of income 1,790 10,804 377

2002 cash dividend


. Operations affecting capital in 2003:- share issues 16 213

. Issue of preferred shares

. BNP Paribas SA shares held pursuant to the 6th resolution of the Annual Shareholders' Meetings of31 May 2002 and 14 May 2003

. Translation adjustment

. Effect of applying standard CRC 2002-03 (note 1)

. Other (3)

. 2003 consolidated net income


2003 cash dividend


. Operations affecting capital in 2004:- share issues 13 239 - capital reductions (50) (916)

� BNP Paribas SA shares held pursuant to the 6th resolution of the Annual Shareholders' Meetingsof 14 May 2003 and 28 May 2004

. Translation adjustment

. Interim dividends paid to minority shareholders of Group subsidiaries

. Other (5)

. 2004 consolidated net income


BNP PARIBAS GROUP

R e t a i n e d e a r n i n g s

Cumulativetranslationadjustment

Parent companyretained earningsand Group’s share

in retained earningsof subsidiaries

Elimination ofshares held byBNP Paribas

Retained earnings,capital gains

resulting from realestate restructuring

and revaluationsurplus

Shareholders’equity attributable toBNP Paribas Group

Minority interests Total consolidatedshareholders’

equity

(93) 11,971 (935) 11,323 23,571 2,939 26,510

346 346 (226) 161 (65) (65) (65)

1,276 1,276

(50) (329) (379) (379) (379)(342) (342) (342) (203) (545)

22 19 19 180 199

3,295 3,295 3,295 343 3,638

(435) 15,012 (1,103) 13,851 26,445 4,535 30,980

(1,040) (1,040) (1,040) (284) (1,324)

(435) 13,972 (1,103) 12,811 25,405 4,251 29,656

229 229 700 700

(94) (802) (896) (896) (896)(167) (167) (167) (284) (451)

(33) (33) (33) (33)25 22 22 12 34

3,761 3,761 3,761 340 4,101

(602) 17,631 (1,905) 15,498 28,321 5,019 33,340

(1,212) (1,212) (1,212) (329) (1,541)

(602) 16,419 (1,905) 14,286 27,109 4,690 31,799

252 252 966 966

(94) (1,611) (1,705) (1,705) (1,705)(187) (187) (187) (104) (291)

(157) (157)62 57 57 (8) 49

4,668 4,668 4,668 403 5,071

(789) 21,055 (2,550) 18,085 30,194 4,824 35,018

- 51 -

BNP PARIBAS GROUPNOTE 22 – CONSOLIDATED SHAREHOLDERS’ EQUITY (cont’d)

OPERATIONS INVOLVING SHARE CAPITAL IN 2002, 2003 AND 2004

Operations affecting capital in 2002

Share-split

In accordance with the authorisation received from the Shareholders’ Meeting of 15 May 2001 (12th resolution), on 18 December 2001 theBoard of Directors decided to carry out a two-for-one share split. Following this share-split, carried out on 20 February 2002,BNP Paribas’ capital was made up of 886,622,994 ordinary shares with a par value of EUR 2.

Capital increases

In accordance with Section L225-129-V of the new French Companies Act (formerly Section 180-V of the 24 July 1966 Act) and pursuantto authorisations received from the Shareholders’ Meeting of 15 May 2001, the Board of Directors decided on 28 February 2002 to issueBNP Paribas shares reserved for participants in the company savings plan via the BNP Paribas Accueil mutual fund. On 27 June 2002,the mutual fund subscribed 7,623,799 ordinary shares with a par value of EUR 2 for this purpose. In addition, BNP Paribas employeessubscribed 927,046 shares with rights from 1 January 2001 under the stock option plan.

At 31 December 2002, the capital of BNP Paribas SA consisted of 895,173,839 fully-paid ordinary shares with a par value of EUR 2.

During 2002, employees also subscribed 705,985 shares with a par value of EUR 2 and with rights from 1 January 2002 under the stockoption plan. The corresponding capital increase was carried out on 23 January 2003.


In accordance with Section L225-129-V of the new French Companies Act (formerly Section 180-V of the 24 July 1966 Act) and pursuantto authorisations received from the Shareholders’ Meeting of 31 May 2002, the Board of Directors decided on 4 February 2003 to issueBNP Paribas shares reserved for participants in the company savings plan via the BNP Paribas Accueil mutual fund. On 2 July 2003, themutual fund subscribed 6,673,360 ordinary shares with a par value of EUR 2 for this purpose. Also on 2 July 2003, 517,716 shares wereissued to employees on exercise of stock options with rights from 1 January 2002 and 100,715 shares with rights from 1 January 2003.




Capital reduction

Pursuant to authorisations received from the Shareholders’ Meeting of 14 May 2003 (18th resolution), the Board of Directors decided on24 March 2004 to cancel by way of a reduction of capital 25,000,000 BNP Paribas shares held in treasury stock.

Capital increases

In accordance with Section L225-129-V of the new French Companies Act (formerly Section 180-V of the 24 July 1966 Act) and pursuantto authorisations received from the Shareholders’ Meeting of 14 May 2003, the Board of Directors decided on 4 February 2004 to issueBNP Paribas shares reserved for participants in the company savings plan via the BNP Paribas Accueil mutual fund. On 6 July 2004, themutual fund subscribed 5,477,862 ordinary shares with a par value of EUR 2 for this purpose. Also on 6 July 2004, 552,435 shares wereissued to employees on exercise of stock options with rights from 1 January 2003 and 54,543 shares with rights from 1 January 2004.

- 52 -




ANALYSIS OF ADDITIONAL PAID-IN CAPITAL IN EXCESS OF PAR

In 2002, additional paid-in capital in excess of par was increased by EUR 328 million following the issue of BNP Paribas shares onexercise of employee stock options and in connection with an employee share issue.

In 2003, this item was increased by EUR 213 million following the issue of BNP Paribas shares on exercise of employee stock optionsand in connection with an employee share issue.

In 2004, this item was increased by EUR 239 million following the issue of BNP Paribas shares on exercise of employee stock optionsand in connection with an employee share issue.

In addition, this item was reduced by EUR 916 million in connection with the cancellation of 25,000,000 BNP Paribas shares.

Additional paid-in capital in excess of par also includes a capital gain on real estate restructuring of EUR 278 million related to arestructuring operation whereby BNP transferred its real estate holdings to its subsidiary “Compagnie Immobilière de France, CIF”, in1991 and 1992. The resulting capital gain is recognised in the consolidated profit and loss account in proportion to the additionaldepreciation charge taken by CIF. The residual gain includes a write-down of EUR 420 million taken during 1997 (see notes 1 and 11).

PREFERRED SHARES

In December 1997, BNP US Funding LLC, a wholly-owned subsidiary of the Group, made a USD 500 million issue of non-cumulativepreferred shares, which do not dilute earnings per ordinary share. The shares pay a contractual dividend of 7.738% for a period of tenyears. At the end of that period, the issuer may redeem the shares at par at the end of any calendar quarter. Until they are redeemed, theshares will pay a dividend indexed to Libor. The proceeds of this issue are included in shareholders’ equity under “Minority interests” andthe corresponding remuneration is treated as a distribution to minority shareholders.

A second USD 500 million issue of non-cumulative preferred shares was carried out in October 2000 by another wholly- ownedsubsidiary, BNP Paribas Capital Trust. These shares pay a contractual dividend of 9.003% for a period of ten years.

In October 2001, two non-cumulative preferred share issues, totalling EUR 350 million and EUR 500 million, were carried out by twowholly-owned subsidiaries of the Group, BNP Paribas Capital Trust II and III. Shares in the first issue pay a dividend of 7% over 5 yearsand shares in the second issue pay a dividend of 6.625% over 10 years. Shares in the first issue are redeemable at the issuer’sdiscretion after five years and at each interest payment date thereafter. Shares that have not been redeemed will continue to pay adividend of 7%.

In January and June 2002, an additional two non-cumulative preferred share issues, totalling EUR 660 million and USD 650 million, werecarried out by two wholly-owned subsidiaries of the Group, BNP Paribas Capital Trust IV and V. Shares in the first issue pay a dividend of6.342% over 10 years. The annual dividend on shares in the second issue is 7.2%, paid quarterly. The shares are redeemable after fiveyears and at each quarterly coupon date thereafter. Shares that have not been redeemed will continue to pay a dividend of 7.2%.

In January 2003, another EUR 700 million non-cumulative preferred share issue was carried out by a wholly-owned subsidiary of theGroup, BNP Paribas Capital Trust VI. The shares pay a contractual dividend of 5.868%. They are redeemable after 10 years and on eachannual coupon date thereafter. Shares not redeemed in 2013 will pay a quarterly dividend equal to the 3-month Euribor + 2.48%.

- 53 -


BNP PARIBAS SHARES HELD BY THE GROUP

Pursuant to the sixth resolution of the Shareholders’ Meeting of 28 May 2004, BNP Paribas was authorised to buy back sharesrepresenting a maximum of 10% of its capital in order to stabilise the share price, or to award or sell the shares to employees under thestatutory profit-sharing scheme or company savings plans, or to cancel the shares acquired, or to sell, exchange or otherwise dispose ofthem, for financial or asset/liability management purposes.

At 31 December 2004, the BNP Paribas Group held 51,808,500 BNP Paribas shares representing an amount of EUR 2,557 million,including 51,683,500 shares representing EUR 2,550 million deducted from shareholders’ equity.

Other participating interests Trading account securities(note 5)

TOTALIn millions of euros

Number ofsecurities

Book value Number ofsecurities

Book value Number ofsecurities

Book value

Shares held at 31 December 2002 27,894,453 1,103 366,000 14 28,260,453 1,117 Shares acquired pursuant to shareholderauthorisations 22,547,920 1,061 22,547,920 1,061

Other movements (5,623,930) (259) 1,242,000 66 (4,381,930) (193) Shares held at 31 December 2003 44,818,443 1,905 1,608,000 80 46,426,443 1,985 Shares acquired pursuant to shareholderauthorisations 35,751,407 1,794 35,751,407 1,794

Capital reduction pursuant to the 18th

resolution of the Annual Shareholders’Meeting of 14 May 2004 (25,000,000) (966) (25,000,000) (966)

Other movements (3,886,350) (183) (1,483,000) (73) (5,369,350) (256)Shares held at 31 December 2004 51,683,500 2,550 125,000 7 51,808,500 2,557

- 54 -

BNP PARIBAS GROUPNOTE 23 – OFF BALANCE SHEET COMMITMENTS


FINANCING COMMITMENTS GIVEN AND RECEIVED

Financing commitments given:To credit institutions 17,812 25,451 16,310 On behalf of customers:� Confirmed letters of credit

� Documentary credits 14,360 14,500 16,326 � Other confirmed letters of credit 102,630 86,686 49,019

� Other commitments given on behalf of customers 37,839 29,650 58,743 ________ ________ _______

154,829 130,836 124,088 ________ ________ ________

Total financing commitments given 172,641 156,287 140,398

Roll-over (standby) commitments received:From credit institutions 30,885 41,217 19,040 On behalf of customers 4,366 2,759 2,496

_______ _______ _______

Total financing commitments received 35,251 43,976 21,536

GUARANTEES AND ENDORSEMENTS GIVEN AND RECEIVED

Guarantees and endorsements given:To credit institutions� Confirmed documentary credits 1,787 1,382 2,035 � Other 4,337 3,865 4,812

______ ______ _______

6,124 5,247 6,847 On behalf of customers� Guarantees and endorsements:

� Real estate guarantees 958 862 883 � Administrative and tax guarantees 7,224 7,038 7,361 � Other 5,630 6,111 6,179

� Other guarantees given on behalf of customers 46,212 37,607 38,956 _______ _______ _______

60,024 51,618 53,379 _______ _______ _______

Total guarantees and endorsements given 66,148 56,865 60,226

Guarantees and endorsements received:From credit institutions 26,414 21,633 23,362 On behalf of customers� Guarantees received from government administrations 2,994 2,392 1,895 � Guarantees received from financial institutions 861 478 299 � Other guarantees received 19,943 18,448 18,268

_______ _______ _______Total guarantees and endorsements received from customers 23,798 21,318 20,462

_______ _______ _______

Total guarantees and endorsements received 50,212 42,951 43,824

COMMITMENTS GIVEN AND RECEIVED ON SECURITIESSecurities to be received 9,570 7,735 14,904 Securities sold under repurchase agreements to be received (a) - 117 133

______ ______ _______

Total securities to be received 9,570 7,852 15,037

Total securities to be delivered 8,241 7,389 7,960

(a) Receipt of these securities is contingent upon exercise of the repurchase option.

- 55 -

BNP PARIBAS GROUP

NOTE 24 – FORWARD AND OPTIONS CONTRACTS

Forward financial instruments are purchased on various markets for use as specific or general hedges of assets and liabilities and forposition management purposes.

2 0 0 4 2 0 0 3In millions of euros, at 31 December

Hedgingtransactions

Positionmanagement

Total Hedgingtransactions

Positionmanagement

Total

Forward contracts 316,478 15,182,620 15,499,098 268,731 14,481,754 14,750,485On organised exchanges 650 7,266,721 7,267,371 18,050 7,217,623 7,235,673

- Interest rate contracts 650 7,220,913 7,221,563 7,253 7,178,284 7,185,537- Foreign exchange contracts - 164 164 10,411 9,864 20,275- Financial assets contracts - 45,644 45,644 386 29,475 29,861

Over-the-counter 315,828 7,915,899 8,231,727 250,681 7,264,131 7,514,812- Forward rate agreements(FRAs)

1,062 584,089 585,151 13,413 529,224 542,637

- Interest rate swaps 172,760 5,805,247 5,978,007 112,179 5,145,442 5,257,621- Currency swaps 54,707 542,526 597,233 61,497 508,927 570,424- Forward currency swaps 86,086 866,112 952,198 62,323 906,114 968,437- Other forward contracts 1,213 117,925 119,138 1,269 174,424 175,693

Options 25,679 5,031,616 5,057,295 40,043 3,566,281 3,606,324On organised exchanges 903 2,559,847 2,560,750 1,046 1,933,578 1,934,624

Interest rate options 28 2,399,290 2,399,318 17 1,748,719 1,748,736- purchased - 1,183,700 1,183,700 17 886,151 886,168- sold 28 1,215,590 1,215,618 862,568 862,568

Currency options - - - 896 896- purchased - - - 787 787- sold - - - 109 109

Other options 875 160,557 161,432 133 184,859 184,992- purchased 78 78,341 78,419 10 114,678 114,688- sold 797 82,216 83,013 123 70,181 70,304

Over-the-counter 24,776 2,471,769 2,496,545 38,997 1,632,703 1,671,700Caps and floors 1,754 573,001 574,755 15,396 393,432 408,828- purchased 789 247,406 248,195 8,053 174,497 182,550- sold 965 325,595 326,560 7,343 218,935 226,278

Swaptions and options(interest rate, currency andother)

23,022 1,898,768 1,921,790 23,601 1,239,271 1,262,872

- purchased 9,365 899,050 908,415 11,670 572,880 584,550- sold 13,657 999,718 1,013,375 11,931 666,391 678,322

Total forward and options contracts 342,157 20,214,236 20,556,393 308,774 18,048,035 18,356,809

At 31 December 2004, credit derivatives recorded under OTC options contracts amounted to EUR 434,097 million (EUR 213,605 millionpurchased and EUR 220,492 million sold).

Most positions management transactions are marked to market and the resulting unrealized gains and losses are therefore posted toincome. Hedging transactions are carried at historical cost, and the related gains or losses are accounted for on a symmetrical basis withthe loss or gain on the underlying transaction.

The market value of the net position of forward contracts is estimated at EUR 3,850 million at 31 December 2004. The market value ofthe net seller position of options is estimated at EUR 5,900 million at 31 December 2004.

- 56 -

- 57 -

BNP PARIBAS GROUPNOTE 24 – FORWARD AND OPTIONS CONTRACTS (cont’d)

ASSESSMENT OF COUNTERPARTY RISKS

The BNP Paribas Group’s exposure to counterparty risk arising on forward and options contracts is assessed according to EuropeanUnion and international capital adequacy ratios applicable at 31 December 2004. Accordingly, it takes into account signed nettingagreements, which are used to attenuate counterparty risk on derivatives.The Bank primarily uses the portfolio approach, which enables it to close all positions in the case of default by the counterparty and markthem to market. All payments receivable from the counterparty are netted off against payments due to the counterparty, to arrive at thenet close-out amount payable or receivable. The net close-out amount may be collateralised by requiring the counterparty to pledge cash,securities or deposits.The Bank also uses bilateral payment flow netting to attenuate counterparty risk on foreign currency payments. Bilateral payment flownetting consists of replacing streams of payment orders in a given currency by a cumulative balance due to or from each party,representing a single sum in each currency remaining to be settled on a given day between the Bank and the counterparty.The transactions concerned are executed according to the terms of bilateral or multilateral master agreements that comply with thegeneral provisions of national or international master agreements. The main bilateral agreement models used are those of the“Association Française des Banques” (AFB), or those of the International Swaps and Derivatives Association (ISDA) for internationalagreements. The BNP Paribas Group also participates in EchoNetting, enabling it to use multilateral netting for transactions involving theother participants within the organisation.

Credit risks on OTC forward and options contracts

In million of euros, at 31 December 2004 2003By type of counterparty Gross

replacementcost

Netreplacement

cost

CollateralNet value

aftercollateral

Weightedrisks

equivalent

Weightedrisks

equivalent

Sovereign exposure 1,848 1,625 - 1,625 - -

Risk exposure on banks in zone A (a) 118,282 22,387 8,213 14,174 8,738 8,016Risk exposure on banks in zone B (a) and non-bankingcounterparties

16,277 9,169 1,124 8,045 7,578 6,677

Total 136,407 33,181 9,337 23,844 16,316 14,693

(a) Zone A consists of the member states of the European Union (EU) and the Organisation for Economic Cooperation and Development (OECD)provided that they have not rescheduled any external sovereign debt within the previous five years, and countries that have negotiated specialborrowing agreements with the International Monetary Fund (IMF) within the framework of the IMF’s General Agreements to Borrow (GAB). ZoneB consists of all other countries.

In million of euros, at 31 December 2004 2003By credit rating (Standard & Poor’s) Net

replacementcost

CollateralNet value

aftercollateral

Weightedrisks

equivalent

Weightedrisks

equivalentAAA – AA 12,356 3,098 9,258 4,715 3,874A 2,696 1,024 1,672 1,934 1,831BBB 13,339 4,119 9,220 5,760 5,273BB or lower 2,517 828 1,689 1,975 1,749Not rated 2,273 268 2,005 1,932 1,966Total 33,181 9,337 23,844 16,316 14,693

At 31 December 2004, the weighted risk equivalent of OTC forward and options contracts represented 0.17% of the sum of the notionalamounts, excluding written options, unchanged from the figure at 31 December 2003.

At 31 December 2004, forwards and options contracts break down by remaining term as follows:

Notional amount by remaining term (in %) Total

Within 1 year After 1 year butwithin 5 years

After 5 years

Interest rate instruments 41% 29% 15% 85%Currency instruments and other contracts 9% 5% 1% 15%

Total 50% 34% 16% 100%

- 58 -

BNP PARIBAS GROUP

NOTE 25 – BNP PARIBAS GROUP EXPOSURE TO MARKET RISKS ON FINANCIAL INSTRUMENT TRANSACTIONS AT31 DECEMBER 2004

Since 31 March 2000, the BNP Paribas Group uses a single internal Value at Risk system to estimate the potential losses that could beincurred in the case of an unfavourable change in market conditions.

Potential losses are measured based on "Gross Earnings at Risk" (GEaR). GEaR takes into account a large number of variables whichcould affect the value of the portfolios, including interest rates, lending margins, exchange rates, the price of the various securities, theirvolatilities and the correlations between variables.

The system uses the latest simulation techniques and includes processing of non-linear (convex) positions, as well as the volatility riskgenerated by options. Daily movements in the different variables are simulated to estimate potential losses on market transactions undernormal market conditions and assuming normal levels of liquidity.

The French banking authorities (Commission Bancaire) have approved this internal model, including the following methodologies:

� capture of the correlation between categories of risk factors (interest rate, currency, commodity and equity risks) in order to integratethe effects of diversifying inherent risks;

� capture of the specific interest rate risk arising from potential variations in lending margins, in order to actively and accuratelymeasure risks associated with trading in credit risks.

Values at Risk set out below have been determined using the internal model. The model parameters have been set by the methodrecommended by the Basel Committee for the determination of estimated values at risk ("Supplement to the Capital Accord toIncorporate Market Risks"). The main measurement parameters are as follows:

� change in the value of the portfolio over a holding period of 10 trading days;� confidence level of 99% (i.e. over a 10-day holding period, potential losses should not exceed the corresponding GEaR in 99% of

cases);� historical data covering 260 days' trading.

For the period from 1 January to 31 December 2004, the total average Value at Risk amounted to EUR 93 million, taking into account theEUR 57 million effect of netting different types of risk. These amounts break down as follows:

Value at Risk (10 days – 99%): Analysis by type of risk

In millions of euros 1 January – 31December 2004

31 December2004

31 December2003

31 December 2002

Average

Interest rate risk 89 57 92 77 Equity risk 47 47 43 86 Currency risk 6 9 9 8 Commodity risk 8 8 6 7 Netting effect (57) (60) (81) (91)

Total 93 61 69 87

- 59 -

BNP PARIBAS GROUP

NOTE 26 – SECURITIZATIONS

The BNP Paribas Group carries out securitization transactions leading to the creation of specific entities on behalf of customers, in somecases with a guarantee or a liquidity line, and on its own behalf, in connection with the management of counterparty risks on certainportfolios and asset-liability management operations for certain subsidiaries. In these cases, the Group retains part of the risk by paying aguarantee deposit or subscribing to a subordinated tranche. The securitization entities are not consolidated, in accordance with generallyaccepted accounting principles.

SECURITIZATION TRANSACTIONS CARRIED OUT ON BEHALF OF CUSTOMERS

� Short-term refinancing operations

At 31 December 2004, five non-consolidated multiseller conduits (Eliopée, Thésée, Starbird, J Bird and Matchpoint) were managed bythe Group on behalf of customers. These entities are refinanced on the short-term commercial paper market. The Group has issuedletters of credit guaranteeing the default risk on the sold receivables up to an amount of EUR 491 million and has also granted liquiditylines totalling EUR 10,457 million to these entities.

At 31 December 2004, no provisions were required in connection with any of these short-term refinancing transactions.

� Medium- and long-term refinancing operations

BNP Paribas acts on behalf of customers as arranger of securitization funds and placing agent for covered bond issues, but does notmanage the securitization funds. As of 31 December 2004, the Group had set up liquidity lines totalling EUR 172 million for four of thefunds (BEI-Iris 4, Tiepolo Finance, Telecom Italia SV and RCI-Renault), representing EUR 1,500 million in securitized receivables. TheGroup has not issued any letters of credit and, consequently, is not exposed to any counterparty risk on these transactions.

SECURITIZATION TRANSACTIONS CARRIED OUT ON THE GROUP'S OWN BEHALF

� In connection with the Group’s asset-liability management activities, Cetelem has sold consumer loans, UCB and UCI have sold realestate loans, Findomestic has sold credit card receivables, and Centroleasing has sold leasing receivables to non-consolidatedsecuritization vehicles. The subsidiaries have also given these vehicles a limited guarantee covering the credit risk on the sold loans.Securitization transactions carried out in accordance with Act No. 88-1205 of 23 December 1988 (amended) dealing withsecuritization funds, are not consolidated pursuant to the criteria laid down in standard CRC 2004-04 (see note 1), because theGroup does not have decision-making power at the level of the funds’ Board of Directors or equivalent.

The following table summarises the transactions carried out at 31 December 2004 (in millions of euros):

Subsidiaries that initiatedsecuritizations

Securitization vehicle Date launched Life of the vehiclescheduled to end

in

Gross amount ofsecuritized receivables at

31 December 2004

Gross amount ofguarantees at

31 December 2004

Cetelem (France) Master Noria 1998 2006 350 14.1

UCB (France) Domos 4 and 5Master Domos

1998-19991999

2008-20112012

4631,366

22.530.5

Findomestic (Italy) Findomestic 2000 2005 325 -MasterDolfin 2003 2008 329 4.0

UCI (Spain) UCI 3 to 11 1997-2004 2005-2017 3,051 37.3

Centro Leasing (Italy) Ponte Vecchio Finance 2002 2007 574 -Ponte Vecchio Finance 2 2003 2010 428 -

At 31 December 2004, no provisions were required in connection with any of the guarantees given to these securitization vehicles.

- 60 -

BNP PARIBAS GROUP

NOTE 26 – SECURITIZATIONS (cont’d)

� In order to reduce the credit risk on certain portfolios, the Group carries out synthetic securitizations by transferring to the market thebulk of the credit risk attached to the retained interest using credit derivatives (purchases of options or credit default swaps). Thesecredit derivatives are entered into either through dedicated structures or directly with other credit institutions.

Synthetic securitizations concern EUR 7 billion worth of consolidated assets, corresponding to loans to major European and Americancompanies. The risk retained by the Group concerns the equity or subordinated tranche of the notes issued by the securitizationvehicles and purchased by the Group.

Synthetic Securitizations (in millions of euros)

Securitization vehicle Date launched Life of thevehicle

scheduled toend in

Gross counterpartyrisk before

securitization at31 December 2004

Gross risk retainedby the Group

(1)

Provisions andlosses in 2004

Accumulated provisionsand losses at

31 December 2004

(2)

Olan 2 (France) 2000 2005 3,546 76.0 - 60.6Euroliberté (France) 2001 2008 1,984 139.8 2.2 20.1Condor (USA) 2001 2006 1,686 96.1 - -Jules Vernes (USA) 2002 2006 215 33.1 - -

(1) This risk is retained by the Group due to the equity instruments issued by the securitization vehicles, against which the initial losses on assetsguaranteed by the vehicles are set off.

(2) If a counterparty defaults on a loan backed by synthetic securitization, the securitization vehicle pays the amount corresponding to the default. Theamount received in respect of the gross risk retained by the Group is set off against the loss of principal on the equity or subordinated tranche of thenotes issued. This is why the portfolios are covered by a provision in the amount of the gross risk retained by the Group.

- 61 -

BNP PARIBAS GROUPNOTE 27 – PENSION AND POSTEMPLOYMENT BENEFIT OBLIGATIONS

� Pension Benefits

Since 1 January 1994, pursuant to the new industry-wide agreement on pensions presented in note 1, the BNP Paribas Group has beenmaking contributions to several nation-wide supplementary pension organisations in France.

The BNP and Paribas pension funds pay additional benefits relative to services rendered prior to 31 December 1993. The actuarial valueof these pension obligations is computed based on the 1993 mortality table recommended by the French Insurance Code. The differencebetween the discount and inflation rates used since 31 December 1999 is roughly 3.0%, corresponding to the constant differentialbetween long-term interest rates and inflation. At 31 December 2004, the pension fund for BNP employees had reserves of approximatelyEUR 59 million, and the pension fund for Paribas employees had reserves of some EUR 282 million. Contributions paid by BNP Paribasunder the above pension schemes in France are charged to the profit and loss account in the year of payment. In addition, a reserve forgeneral banking risks was set up as a precautionary measure in 1993, mainly to take account of the general demographic risk addressedby the industry-wide agreement concluded in September 1993 (see notes 1 and 21).

BNP Paribas SA has set up a funded pension system via a company agreement. This system provides for the payment to BNP Paribasemployees of additional benefits over and above those they receive from the nation-wide organisations. Concerning plans outside France, pension obligations are provided for in the consolidated financial statements according to the methoddescribed in note 1. Retirement plans are based on pension rights acquired which are defined using either the employee's last salary and the number ofyears' service (United Kingdom, Ireland and Canada) or rights to capital acquired each year, expressed as a percentage of annual salaryand on which interest is payable at a pre-defined rate (United States). Some plans are supplementary retirement schemes related to statutory pensions (Norway). Other plans are wholly funded through insurance companies (Spain and Portugal) or independent fund managers (United Kingdom). The demographic and financial assumptions used to estimate the discounted present value of benefit obligations and the estimated yieldon plan assets are based on the economic conditions specific to each country or Group company. Unamortised actuarial differencesamounted to EUR 76 million at 31 December 2004, net of EUR 7 million in amortisation for the year. EUR 101 million are not amortisable,in accordance with the corridor method. In recent years, defined benefit plans have been closed to new employees in several countries (United Kingdom, Ireland, Norway,Australia, Germany and Luxembourg). These employees are now offered defined contribution plans. Under defined contribution plans,the company's obligation consists primarily of paying a percentage of the beneficiary's salary into the pension plan. � Seniority, Postemployment and Other Postretirement Benefits

Employees of the various BNP Paribas Group companies are entitled to collective or contractual seniority and postemployment benefitssuch as retirement and seniority bonuses. In France, BNP Paribas is encouraging voluntary departures and early retirement amongemployees who meet certain eligibility criteria. Various companies in the BNP Paribas Group have also set up defined-benefitsupplementary pension plans.

As a general rule, actuarial valuations of these obligations are made using a method that takes into account projected end-of-careersalaries (projected unit credit method) in order to determine the aggregate charge corresponding to benefits remaining to be paid to earlyretirees, retirees (if applicable), as well as the vested benefits of active employees.

Assumptions concerning mortality, employee turnover, and future salaries, as well as discount rates (long-term market rates) andinflation, take into account economic conditions specific to each country or Group company. In France, the 1988-1990 mortality tableadapted to the banking industry is used.

At 31 December 2004, the discount rate used for France and the estimated inflation rate are consistent with those used to assess therisks related to additional bank pension benefits.

BNP Paribas sets up a provision to cover the charges related to the voluntary departure or early retirement of employees, once thevoluntary departure or early retirement plan concerned has been approved or submitted for collective approval.

These provisions set up for pensions and other postretirement benefit obligations in France and other countries amounted toEUR 1,349 million at 31 December 2004.

- 62 -

BNP PARIBAS GROUP

NOTE 28 – MATURITY SCHEDULE OF LOANS, DEPOSITS AND INTEREST RATE INSTRUMENTS

In millions of euros, at 31 December Maturity

Demandand

overnight

Maturingwithin three

months

Maturingafter three

monthsbut withinone year

Maturingafter onebut withinfive years

Maturingafter five

years

Total

LOANS (GROSS)Interbank and money market items (note 3) 48,291 227,952 16,044 9,412 14,323 316,022� Cash and amounts due from central banks and

post office banks6,843 6,843

� Treasury bills and money market instruments 103,644 6,324 6,945 11,539 128,452� Due from credit institutions 41,448 124,308 9,720 2,467 2,784 180,727

Customer items (note 4) 19,269 78,259 34,625 78,924 55,773 266,850� Due from customers 19,269 75,637 31,082 66,611 53,262 245,861� Leasing receivables 2,622 3,543 12,313 2,511 20,989

Bonds and other fixed income instruments(note 5)

55,424 2,033 6,722 3,124 67,303

� Trading account securities 46,191 46,191� Securities available for sale 6,418 673 3,594 1,460 12,145� Debt securities held to maturity 2,815 1,360 3,128 1,664 8,967

DEPOSITSInterbank and money market items andsecurities (note 14)

58,547 160,081 21,429 3,012 3,069 246,138

� Total interbank and money market items 58,547 159,901 21,146 2,832 2,537 244,963� Interbank market securities 180 283 180 532 1,175

Customer deposits, retail certificates ofdeposit, and negotiable certificates of deposit(note 15)

113,684 153,488 19,416 25,488 16,192 328,268

� Total customer deposits 113,684 101,330 6,921 9,353 6,424 237,712� Total bonds and negotiable short-term debt

instruments52,158 12,495 16,135 9,768 90,556

The BNP Paribas Group manages its liquidity within gap limits, all currencies combined, that are determined by the General ManagementCommittee:� the maximum mismatch on weighted balance sheet and off balance sheet commitments maturing in more than one year (attributing

standard maturities to commitments with no contractual maturity) is set at 25% of loans maturing in more than one year;

� the maximum mismatch on commitments with a contractual maturity, that are scheduled to mature in more than one year, is set at150% of stable funds with no contractual maturity (customer demand deposits and savings deposits net of overdrafts, shareholders'equity net of fixed assets).

BNP Paribas continually seeks to comply with regulatory guidelines with respect to its short-term (one-month) liquidity ratio and its ratio ofshareholders’ equity to long-term funding (funds maturing in more than five years).

Maturities of bonds and subordinated debt are presented in notes 16 and 20.

- 63 -

BNP PARIBAS GROUP

NOTE 29 – NET INTEREST INCOME

Expenses IncomeIn millions of euros

Net income (expenses)

2004 2003 2002 2004 2003 2002 2004 2003 2002

(8,165) (7,212) (11,460) 6,682 5,846 8,876 Interbank items(note 30) (1,483) (1,366) (2,584)

(3,822) (3,524) (3,695) 10,766 10,548 11,679 Customer items(note 31) 6,944 7,024 7,984

(6,269) (5,991) (5,757) 7,529 7,309 7,119 Leasing transactions 1,260 1,318 1,362

(3,957) (3,936) (5,310) Debt securities (3,957) (3,936) (5,310)

3,355 3,471 3,932 Bonds and other fixed incomeinstruments (note 32) 3,355 3,471 3,932

(22,213) (20,663) (26,222) 28,332 27,174 31,606 Net interest income (expenses) 6,119 6,511 5,384

NOTE 30 – NET INTEREST INCOME (EXPENSE) ON INTERBANK ITEMS

Expenses IncomeIn millions of euros

Net income (expense)

2004 2003 2002 2004 2003 2002 2004 2003 2002

(4,940) (4,751) (7,901) 3,510 3,556 5,622 Interest on interbank demanddeposits, loans and borrowings (1,430) (1,195) (2,279)

(3,225) (2,461) (3,559) 3,172 2,288 3,251 Interest on securities held or givenunder resale/repurchaseagreements (53) (173) (308)

- 2 3 Interest on subordinated termloans - 2 3

(8,165) (7,212) (11,460) 6,682 5,846 8,876 Net interest income (expense)on interbank items (1,483) (1,366) (2,584)

- 64 -

BNP PARIBAS GROUP

NOTE 31 – NET INTEREST INCOME (EXPENSE) ON CUSTOMER ITEMS

Expenses Income In millions of euros Net income (expense)

2004 2003 2002 2004 2003 2002 2004 2003 2002

(3,241) (2,978) (3,225) 10,332 10,133 11,215 Interest on customer loans anddeposits 7,091 7,155 7,990

(581) (546) (470) 420 411 462

Interest on securities held orgiven under resale/repurchaseagreements (161) (135) (8)

14 4 2 Interest on subordinated termloans 14 4 2

(3,822) (3,524) (3,695) 10,766 10,548 11,679 Net interest income (expense)on customer items 6,944 7,024 7,984

NOTE 32– NET INCOME FROM SECURITIES PORTFOLIO


Interest on bonds and other fixed income instruments

Securities available for sale 751 653 810 Debt securities held to maturity 1,175 1,117 1,080 From Codevi "industrial development" securities 229 230 212 From hedging of interest rate instruments and other 1,200 1,471 1,830

______ ______ ______Total interest on bonds and other fixed income instruments 3,355 3,471 3,932

Income on equities and other variable income instruments

Securities available for sale 41 12 22 Equity securities held for long-term investment 147 148 157 Investments in non-consolidated undertakings and other participatinginterests 106 123 144

_____ _____ ______Total income on equities and other variable income instruments 294 283 323

Net income from securities portfolio 3,649 3,754 4,255

- 65 -

BNP PARIBAS GROUP

NOTE 33 - NET COMMISSIONS

NetIn millions of euros

2004 2003 2002

Commissions on interbank and money market transactions 174 181 181 Commissions on customer transactions 1,632 1,482 1,530 Commissions on securities transactions (1) 111 145 (103)Commissions on foreign exchange and arbitrage transactions (4) (9) 10 Commissions on securities commitments 277 193 113 Commissions on forward financial instruments (158) (143) (124)Commissions on financial services rendered:Commissions on securities managed or on deposit:

� Custody fees 188 170 184 � Mutual fund management 818 732 739 � Management of customer securities portfolios 168 200 218 � Other commissions on securities managed or on deposit 30 32 30

______ ______ ______Total commissions on securities managed or on deposit 1,204 1,134 1,171

Commissions on securities transactions carried out on behalf of customers:� For purchases and sales of securities 256 257 302 � For purchases and sales of mutual fund shares 131 124 139 � Other commissions on securities transactions carried out on behalf of customers 271 273 248

_____ _____ _____Total commissions on securities transactions carried out on behalf of customers 658 654 689

Other commissions:� Commissions on customer assistance and advisory services 637 428 508 � Commissions on payment instruments 579 558 552 � Commissions on other financial services (1,115) (970) (908)� Expense recoveries 111 118 116 � Commissions on miscellaneous revenues 388 365 350 � Commissions on other banking transactions 193 157 93

_____ _____ _____Total other commissions 793 656 711

______ _____ ______Total commissions on financial services 2,655 2,444 2,571

Net commissions 4,687 4,293 4,178

(1) The change in 2003 stems from the full consolidation of the entities of the Cortal Consors Group, which were previously accounted for by the equitymethod.

Total commissions represented 24.9% of net banking income in 2004 (23.9% in 2003 and 24.9% in 2002).

- 66 -

BNP PARIBAS GROUP

NOTE 34 - UNDERWRITING RESULT AND NET INVESTMENT INCOME OF INSURANCE COMPANIES


Net premium income 10,848 8,980 7,890

Net investment income 1,894 1,770 1,706

Claims expenses and changes in claims reserves (10,848) (9,100) (8,170)

Other underwriting income and expenses, net 25 8 14

Underwriting result and net investment income of insurancecompanies (a)

1,919 1,658 1,440

Commissions paid to business referral partners and other contracting partners are not deducted from underwriting result and netinvestment income of insurance companies. Those commissions are recorded as “Net commissions” in the profit and loss account under“Commissions on other financial services” (see note 33).

The above amounts are stated after eliminating intercompany income and expenses and net of reinsurance.

Changes in the value of underlying assets for unit-linked business are included in net investment income. They are offset by asymmetrical change in mathematical reserves set aside for unit-linked business, included in “Claims expenses”.

Gross premiums totaled EUR 11,196 million in 2004 (EUR 9,203 million in 2003 and EUR 8,192 million in 2002).

(a) In 2004, the contribution of Group insurance companies to underwriting result and net investment income breaks down as follows, afterelimination of intercompany income and expenses:

In millions of euros 2004

NATIOVIE CARDIF OTHERCOMPANIES

TOTAL 2003 2002

Life underwriting result 119 89 44 252 210 145

Non-life underwriting result 32 70 - 102 76 59

Management fees addback 310 1,090 57 1,457 1,289 1,207

Financial reclassifications 118 42 3 163 147 113

_____ _____ _____ _____ _____ _____Sub-total 579 1,291 104 1,974 1,722 1,524

Elimination of intercompany income and expenses (40) (13) (2) (55) (64) (84)_____ _____ _____ _____ _____ ______

Net contribution to underwriting result and netinvestment income

539 1,278 102 1,919 1,658 1,440

- 67 -

BNP PARIBAS GROUP

NOTE 35 – SALARIES AND EMPLOYEE BENEFITS, INCLUDING PROFIT-SHARING


Salaries 4,838 4,742 4,619

Termination benefits and social security taxes:Retirement bonuses and retirement expenses 292 400 385 Social security taxes 1,204 1,172 1,057 ______ ______ _____

Total termination benefits and social security taxes 1,496 1,572 1,442

Incentive plans and profit-sharing:Incentive plans 85 82 57 Profit-sharing 147 97 64 ______ _____ _____

Total incentive plans and profit-sharing 232 179 121

Payroll taxes 306 270 263

Total salaries and employee benefits, including profit-sharing 6,872 6,763 6,445

Gross remuneration and benefits paid to Executive Committee members in 2004 totaled EUR 20.5 million (EUR 10.4 million in 2003).Year-on-year changes are mainly attributable to the amount paid to the Head of BNP Paribas Capital in connection with his statutoryshare in the capital gains generated by the investment portfolio management team. A provision was booked to cover this amount in thefinancial years prior to 2003 during which the corresponding capital gains arose. The gross amount set out above also includes fixedcompensation for 2004, variable compensation received in 2004 in respect of 2003, attendance fees paid by Group companies andshares awarded in 2000, 2001 and 2002 under the deferred bonus plan.

Attendance fees paid to members of the BNP Paribas Board of Directors totaled EUR 0.4 million.

- 68 -

BNP PARIBAS GROUP

NOTE 36 – STOCK OPTION PLANS

1) BNP PARIBAS UNEXPIRED STOCK OPTION PLANS

Plan year Date of EGMat which plan

wasauthorised

Date of BoardMeeting at

which the planterms were

decided

Number ofgrantees

Number ofoptionsgranted

Starting date ofthe exercise

period

Option expirydate

Exerciseprice(in

euros)

Number ofoptions

exercised orforfeited at

31 Dec.2004

Optionsoutstandingat 31 Dec.

2004

2001 (1) (2) 23 May 2000 15 May 2001 932 6,069,000 15 May 2005 14 May 2011 49 164,000 5,905,000

2002 (2) 23 May 2000 31 May 2002 1,384 2,158,570 31 May 2006 30 May 2012 60 66,520 2,092,050

2003 (3) 23 May 2000 21 March 2003 1,302 6,693,000 21 March 2007 20 March 2013 37.10 39,600 6,653,400

2004 (3) 23 May 2000 24 March 2004 1,458 1,779,850 24 March 2008 21 March 2014 49.80 2,000 1,777,850

(1) The numbers of options and exercise prices have been adjusted for the two-for-one share split which took place on 20 February 2002.(2) The options are subject to vesting conditions related to the ratio between consolidated net income and average shareholders' equity for each of the

years concerned. The minimum average ratio is 16% over the four years from the year of grant or over a rolling three-year period starting in thesecond year after the year of grant.

(3) The vesting rules applicable to a portion of the options granted to employees are based in part on BNP Paribas share performance in relation to theDow Jones EuroStoxx Bank index.

2) BNP UNEXPIRED STOCK OPTION PLANS (1)

Plan year Date of EGMat which plan

wasauthorised

Date of BoardMeeting at

which the planterms were

decided

Number ofgrantees

Number ofoptionsgranted

Starting dateof the

exerciseperiod

Option expirydate

Exerciseprice(in

euros)

Number ofoptions

exercised orforfeited at

31 Dec.2004

Optionsoutstandingat 31 Dec.

2004

1997 14 Dec. 1993 22 May 1997 64 476,000 23 May 2002 22 May 2007 18.45 268,360 207,640

1998 14 Dec. 1993 13 May 1998 259 2,074,000 14 May 2003 13 May 2008 37.28 867,577 1,206,423

1999 13 May 1998 3 May 1999 112 670,000 4 May 2004 3 May 2009 37.64 201,179 468,821

1999 (2) 13 May 1998 22 Dec. 1999 642 5,064,000 23 Dec. 2004 22 Dec. 2009 45.16 508,720 4,555,280

2000 (2) 13 May 1998 7 April 2000 1,214 1,754,200 8 April 2005 7 April 2010 42.50 261,500 1,492,700

(1) The numbers of options and exercise prices have been adjusted for the two-for-one share split which took place on 20 February 2002.(2) Plans concerning the employees of the two groups, BNP and Paribas, prior to their merger. The options vested only in the event that no payments

were due in respect of the Contingent Value Rights Certificates attached to the shares issued at the time of the BNP-Paribas merger (see note 22).

- 69 -

BNP PARIBAS GROUP

NOTE 36 – STOCK OPTION PLANS (cont’d)

3) PARIBAS UNEXPIRED STOCK OPTION PLANS

Planyear

Originatingcompany

Date of EGM atwhich plan was

authorised

Date of BoardMeeting at which

the plan terms weredecided

Numberof

grantees

Adjusted numberof optionsgranted (1)

Starting dateof the

exerciseperiod

(2)

Option expirydate

Adjustedexerciseprice (1)

(ineuros)

Adjusted number ofoptions exercised orforfeited at 31 Dec.

2004 (1)

Optionsoutstanding at31 Dec. 2004

(1)

� PARIBAS SA AND MERGED SUBSIDIARIES

1997 CFP 27 May 1992 20 Jan. 1997 526 5,178,206 20 Jan. 2002 20 Jan. 2005 17.30 5,015,233 162,973CFP 27 May 1992 7 July 1997 4 77,125 7 July 2002 7 July 2005 19.47 68,447 8,678CB 26 April 1997 30 Sept. 1997 149 615,608 1 Oct. 2002 29 Sept. 2005 19.71 390,117 225,491

CFP 25 April 1997 26 Dec. 1997 319 6,370,545 26 Dec. 2002 26 Dec. 2005 23.47 4,558,664 1,811,881

1998 PARIBAS 11 May 1998 17 Nov. 1998 975 7,255,377 17 Nov. 2003 17 Nov. 2006 20.41 4,639,939 2,615,438

1999 PARIBAS 24 April 1997 4 May 1999 1 30,850 4 May 2004 4 May 2007 31.88 0 30,850

� FULLY CONSOLIDATED SUBSIDIARY OF PARIBAS

1997 CETELEM 27 March 1997 22 Sept. 1997 117 332,893 23 Sept.2002 21 Sept. 2005 17.19 224,323 108,570

CB: Compagnie Bancaire CFP: Compagnie Financière Paribas____________________(1) Number of options and exercise price expressed in BNP Paribas shares and calculated after the two-for-one share split which took place on 20

February 2002:

- For Compagnie Bancaire, Compagnie Financière Paribas and Banque Paribas, based on the following conversion rates:

9 Paribas shares for 5 Compagnie Bancaire shares, 1 Paribas share for 1 Compagnie Financière Paribas share, 1 Paribas share for 1 Banque Paribasshare, 3.085 BNP Paribas shares for 1 Paribas share.

- For Cetelem, which is fully consolidated, the number of options and exercise price are expressed in BNP Paribas shares calculated after theexchange: 1.791 Paribas shares for 1 Cetelem share, and 3.085 BNP Paribas shares for 1 Paribas share.

(2) Exercise dates set at the time of grant. The BNP Paribas merger agreement stipulates that the options may not be exercised until the fifth anniversaryof the date of grant, as required under French tax rules, whatever the original exercise dates.

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BNP PARIBAS GROUP

NOTE 37 – GAINS (LOSSES) ON DISPOSALS OF LONG-TERM INVESTMENTS AND CHANGES IN PROVISIONS


Debt securities held to maturityDisposal gains 5 106 7 Disposal losses (4) (3) -Deductions from provisions 1 1 -___ ___ ___

Net gains on disposals of debt securities held to maturity and changes inprovisions

2 104 7

Equity securities held for long-term investmentDisposal gains 834 790 1,147 Disposal losses (285) (248) (73)Additions to provisions (131) (261) (396)Deductions from provisions 331 243 219 _____ _____ _____

Net gains on disposals of equity securities held for long-term investment andchanges in provisions

749 524 897

Investments in non-consolidated undertakings and other participatinginterests

Disposal gains 234 337 187 Disposal losses (252) (501) (109)Additions to provisions (115) (201) (233)Deductions from provisions 259 416 147 _____ _____ _____

Net gains (losses) on disposals of investments in non-consolidatedundertakings and other participating interests and changes in provisions 126 51 (8)

Deduction from provisions for industry risks - 218 -

Operating assets- Disposal gains 24 53 11 - Disposal losses (58) (38) (4)____ ____ ____

Net (losses) gains on disposals of operating assets (34) 15 7

Total net gains on disposals of long-term investments and changes inprovisions

843 912 903

As mentioned in note 1 concerning Accounting Policies, the BNP Paribas Group has changed the method used to recognise in the profitand loss account revenues related to payouts made by funds. The impact of this change in the method used to record fund payoutsresulted in the recognition of EUR 167 million in net gains on long-term investments, including EUR 100 million in revenues received onprior periods.

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BNP PARIBAS GROUP

NOTE 38 – NON-RECURRING ITEMS


Movements in provisions and incurred costs for employee benefits (159) (313) 21

Compliance costs (changes in laws and regulations) (83) (45) (49)

Movements in provisions for restructuring and discontinued operations (37) (59) (51)

Write-downs relating to long-term investments and leased vehicles (28) - (42)

Provision for losses on real estate lease contract with a call option - (10) (25)

Other non-recurring expenses, net (82) (67) (28)

Net non-recurring items (389) (494) (174)

Non-recurring items reflect the impact on the financial statements of events that do not relate to the ordinary activities of the BNP ParibasGroup’s various lines of business. If these items were included under other profit and loss account headings, the comparability of current-period operations with those of the reference periods would be impaired.

In 2004, BNP Paribas signed a company agreement aimed at setting up a compulsory health scheme for BNP Paribas employees inFrance. These employees are now all members of this scheme known as Mutuelle du Groupe BNP Paribas. Under the agreement, theBank will pay to Mutuelle du Groupe BNP Paribas a contribution for each active employee who is a member of the scheme and will ceaseto pay contributions for retired members. The Bank has paid a final balance of EUR 152 million to Mutuelle du Groupe BNP Paribas tocover its total pension commitments with this establishment in relation to current and future retirees.

Under the French Pensions Reform Act (Act no.2003-775) dated 21 August 2003, employees can elect to retire before the age of 65, butcan no longer be required to do so by their employer. This legislative change has no impact on the rules governing the retirementbonuses paid by BNP Paribas Group companies in France. However, it does affect the actuarial assumptions applied to date by theGroup to calculate the present value of the related benefit obligation, because of the probable impact of the new legislation on the age atwhich employees choose to retire. The Group has revised its estimate of the benefit obligation based on the new assumptions and hasalso recorded a provision for the payroll taxes that will now be due on retirement bonuses paid to employees who choose to retire beforethe age of 65. The additional cost, in the amount of EUR 229 million, was provided for in full in 2003, in accordance with the practiceconsistently followed by the Bank and its French subsidiaries, and with Group policies.

In 2003, the Bank also set up a EUR 70 million provision in connection with the new Employment Adaptation Plan implemented in orderto manage the impact of the Pension Reform Act on the Group's employee age pyramid in France. In 2004, this provision was topped upin the amount of EUR 7 million.

The above provisions are included in “Movements in provisions and incurred costs for employee benefits”.

In 2004, the BNP Paribas Group recorded charges of EUR 83 million (EUR 45 million in 2003) to reflect the costs of adapting informationsystems due to the application of International Financial Reporting Standards as from 1 January 2005, and the changes in capitaladequacy rules introduced by the international regulatory authorities. In 2002, BNP Paribas recorded a provision of EUR 49 million tocover the final costs of adapting its production and information systems to deal with the introduction of the single European currency,bringing the total estimated cost of the project – incurred over the period 1996 to 2002 – to EUR 500 million.

The Group's UK fleet-financing subsidiaries use an external valuation model to determine projected resale values of leased vehicles.Problems were encountered in 2002 with the model used by a recently-acquired subsidiary, leading to the adoption of a new model andthe recording of an exceptional EUR 42 million write-down of the value of leased vehicles to correct the valuation errors generated by theprevious model.

Under a real-estate lease agreement signed in 1993 by First Hawaiian Bank, BancWest, a Group subsidiary, entered into an agreementto lease its headquarters building located in Hawaii until December 2003. In early 2003, BancWest opted to purchase this building. Thepurchase value was written down by EUR 35 million (of which EUR 25 million were recorded in 2002) to take into account the lastingdecline of the real estate market in Hawaii.

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BNP PARIBAS GROUP

NOTE 39 – SEGMENT INFORMATION

� Income by Business Segment, Based on Allocated Capital

Income by business segment based on allocated capital is determined by attributing to each business the capital allocated to it basedon the risks incurred. Capital allocations are made by applying a series of criteria based mainly on the capital required to cover risk-weighted assets, as determined according to capital adequacy rules.

Net banking income Gross operatingincome

Operating income(loss)

Pre-tax incomeIn millions of euros

2004 2003 2004 2003 2004 2003 2004 2003

French Retail Banking 4,922 4,733 1,556 1,467 1,333 1,242 1,337 1,240 Financial Services and International RetailBanking

5,057 4,903 2,240 2,158 1,801 1,629 1,644 1,408

Corporate and Investment Banking 5,685 5,818 2,442 2,434 2,384 1,801 2,448 1,879 Asset Management and Services 3,019 2,476 1,066 803 1,061 787 993 723 BNP Paribas Capital 4 (34) (26) (73) (26) (76) 661 496 Other business units 136 39 (47) (139) - (94) (178) (160)

Total 18,823 17,935 7,231 6,650 6,553 5,289 6,905 5,586

France 10,365 9,891 3,504 3,303 3,150 2,522 3,531 2,886 Other European Economic Area countries 4,269 3,748 1,807 1,332 1,533 1,024 1,650 1,190 America and Asia 3,752 3,874 1,717 1,832 1,699 1,617 1,554 1,393 Other countries 437 422 203 183 171 126 170 117

� Group Activity by Geographic Area

Interbank and moneymarket items Customer items Total

In millions of euros, at 31 December 2004 2003 2004 2003 2004 2003

AssetsFrance 97,672 68,501 136,778 118,338 234,450 186,839Other European Economic Area countries 95,894 91,665 65,233 53,593 161,127 145,258America and Asia 119,686 112,463 51,311 45,518 170,997 157,981Other countries 2,434 2,279 4,758 4,524 7,192 6,803

Total assets (notes 3 and 4) 315,686 274,908 258,080 221,973 573,766 496,881

LiabilitiesFrance 83,426 53,875 112,339 90,582 195,765 144,457Other European Economic Area countries 85,166 84,622 77,298 74,172 162,464 158,794America and Asia 74,577 50,633 41,570 40,113 116,147 90,746Other countries 1,794 2,124 6,505 5,754 8,299 7,878

Total liabilities (notes 14 and 15) 244,963 191,254 237,712 210,621 482,675 401,875

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BNP PARIBAS GROUP

NOTE 40 – CORPORATE INCOME TAX


Current taxes for the period 1,756 1,579 1,058 Deferred taxes for the period 74 (98) 117

Income tax expenses 1,830 1,481 1,175

� on recurring items 1,967 1,524 1,210 � on non-recurring items (137) (43) (35)

A new tax regime was introduced in the 2003 Finance Act. This regime allows listed real estate investment companies (SIIC) to claim fullexemption from corporate income tax on disposal gains and recurring profits generated by their eligible businesses, in exchange for thepayment of an exit tax equal to 16.5% of unrealised gains on assets eligible at 1 January 2003. The Klépierre group elected for thisregime, and in 2004 the BNP Paribas Group recorded a EUR 26 million provision for the related taxes (EUR 104 million in 2003).

An exceptional tax was introduced in the 2004 Finance Act on a portion of the special long-term capital gains reserve set up bycompanies. At 31 December 2004, the BNP Paribas Group recorded a EUR 28 million tax charge corresponding to the compulsoryportion of this tax.

Tax savings realised by the Group in 2004 from the recognition of tax loss carryforwards or the deduction of expenses accounted for inprior years amounted to EUR 57 million (EUR 51 million in 2003 and EUR 40 million in 2002). Unrecognised deferred tax assets at31 December 2004 amounted to EUR 373 million (EUR 370 million at 31 December 2003 and EUR 321 million at 31 December 2002).

Analysis for the effective rate of tax:

In % 2004 2003 2002

Standard tax rate in France 33.3 33.3 33.3 Impact of long-term capital gains taxed at a reduced rate in France (4.0) (1.4) (0.6)Share of earnings of companies carried under the equity method (0.9) (0.8) (0.6)Permanent differences added back to taxable income in France 1.6 (2.0) (3.1)Differences in foreign tax rates (5.2) (6.8) (8.0)Effect of losses deducted from net income 1.9 3.3 2.9 Other (0.2) 0.9 0.5

Effective rate of tax 26.5 26.5 24.4

Deferred taxes break down as follows:


Companiesincluded in the

BNP Paribas SAtax group(note 2)

Othercompanies

Total Total Total

Deferred tax assets (1) 1,906 717 2,623 1,950 1,664

Deferred tax liabilities 1,909 1,246 3,155 2,514 2,374

Net deferred tax liabilities 3 529 532 564 710

(1) Deferred tax assets include tax loss carryforwards of EUR 65 million in 2004 (EUR 156 million in 2003 and EUR 134 million in 2002).

The deferred tax liability on the capital gain realised on BNP’s transfer to its subsidiary Compagnie Immobilière de France of buildingsand rights to real estate leasing contracts amounted to EUR 163 million at 31 December 2004.

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BNP PARIBAS GROUP

NOTE 41 – BNP-PARIBAS MERGER-RELATED RESTRUCTURING COSTS

In connection with the merger of BNP and Paribas, on 30 September 1999 – the date on which the Paribas Group was first consolidated– provisions and asset write-downs were recorded in connection with the restructuring of the two groups, for a total amount of EUR 989million net of tax.

The following table presents an analysis of merger-related restructuring costs incurred since 1 October 1999.

In millions of eurosRestructuring

provisionAmortisation of

goodwillTax effect Total restructuring

charge, net of tax

Fourth quarter 1999 (59) (183) 33 (209)

2000 (330) - 101 (229)

2001 (501) - 163 (338)

2002 (143) - 45 (98)

2003 (98) - 34 (64)

2004 (51) - 18 (33)

NOTE 42 – NUMBER OF EMPLOYEES AT YEAR-END

The number of employees of the BNP Paribas Group (fully and proportionally consolidated companies) breaks down as follows:

31/12/2004 31/12/2003 31/12/2002

BNP Paribas mainland France 37,473 37,200 37,335including executives 14,917 14,066 13,368Subsidiaries in mainland France 14,745 13,844 14,065

Total mainland France 52,218 51,044 51,400Total outside mainland France 42,674 38,027 36,285

Total BNP Paribas Group 94,892 89,071 87,685BNP Paribas SA 44,534 44,060 44,908Subsidiaries 50,358 45,011 42,777

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATEDFINANCIAL STATEMENTS

Year ended 31 December 2004

Barbier Frinault & AutresErnst & Young41, rue Ybry

92576 Neuilly-sur-Seine Cedex

PricewaterhouseCoopers Audit32, rue Guersant

75017 Paris

Mazars & GuérardMazars

Le Vinci - 4, allée de l'Arche92075 Paris la Défense

This is a free translation into English of the statutory auditors’ report on the consolidated financial statementsissued in the French language and is provided solely for the convenience of English speaking readers. Thestatutory auditors’ report on the consolidated financial statements includes information specifically required byFrench law in all audit reports, whether qualified or not, and this is presented below the opinion on theconsolidated financial statements. This information includes an explanatory paragraph discussing the auditors’assessments of certain significant accounting and auditing matters. These assessments were considered for thepurpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provideseparate assurance on individual account captions or on information taken outside of the consolidated financialstatements.

This report on the consolidated financial statements, together with the statutory auditors’ report addressingfinancial and accounting information in the Chairman’s report on internal control, should be read in conjunctionwith, and construed in accordance with, French law and professional auditing standards applicable in France.

To the shareholdersBNP Paribas16, boulevard des Italiens75009 Paris

As the Statutory Auditors appointed by the General Shareholders' Meeting, we have audited theaccompanying consolidated financial statements of BNP Paribas, presented in euros, for the year ended31 December 2004.

These consolidated financial statements have been approved by the Board of Directors. Our responsibility isto express an opinion on these consolidated financial statements based on our audit.

1. Opinion on the consolidated financial statements

We conducted our audit in accordance with the professional standards applicable in France. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free of material misstatement. An audit includes examining on a testbasis evidence supporting the amounts and disclosures in the consolidated financial statements. An auditalso includes assessing the accounting principles used and significant estimates made in the preparation ofthe consolidated financial statements, as well as evaluating the overall consolidated financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly the consolidatedfinancial position of BNP Paribas and its subsidiaries at 31 December 2004 and the consolidated results ofoperations for the year then ended, in accordance with the accounting rules and principles applicable inFrance.

2. Justification of our assessments

In accordance with the requirements of article L. 225-235 of the French Commercial Code relating to thejustification of our assessments, we draw your attention to the following matters:

For all companies carrying out banking activities, significant accounting estimates are required forprovisioning credit risk, and for determining the fair value of financial instruments, investments in non-consolidated undertakings, other participating interests and equity securities held for long-term investment.

� BNP Paribas records provisions to cover the credit risks inherent to its business (notes 1, 4, 8 and19 to the consolidated financial statements). As part of our assessment of these estimates, weexamined the control procedures applicable for monitoring credit risks, assessing irrecoverabilityrisks and determining the related specific and general provisions;

� BNP Paribas uses internal models to value its positions on financial instruments which are not listedon organised exchanges (note 1 to the consolidated financial statements). As part of ourassessment of these estimates, we examined the control procedures applicable to the verification ofthese models and the determination of the parameters used;

� investments in non-consolidated undertakings, other participating interests and equity securitiesheld for long-term investment are recorded at the lower of cost and fair value. Fair value isdetermined based on available information using a multi-criteria approach (note 1 to theconsolidated financial statements). As part of our assessment of these estimates, we examined thedata used to determine fair value for the main items within these portfolios.

We assessed whether these estimates were reasonable.

Our assessments on these matters were made in the context of the performance of our audit of theconsolidated financial statements taken as a whole and therefore contributed to expressing our opinionset out in the first part of this report.

3. Specific verification

In accordance with professional standards applicable in France, we have also verified the informationgiven in the group management report. We have no matters to report with regard to its fair presentationand conformity with the consolidated financial statements.

Neuilly-sur-Seine, Paris and La Défense, 25 February 2005

The Statutory Auditors

Barbier Frinault & Autres

Radwan Hoteit

PricewaterhouseCoopers Audit

Etienne Boris

Mazars & GuérardMazars

Hervé Hélias

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